Optimising Working Capital Management in Smes: Insights from Hungarian Enterprises and Implications for the Kurdish Region

Abstract

This study attempts to disentangle the complex relationships between working capital components, financial metrics, and industry-specific patterns in small and medium-sized enterprises (SMEs) by analysing 15 years of data from 7,252 Hungarian companies. This research aims to facilitate a thorough understanding of efficient working capital practices for sustainable business development by offering practical insights and strategic recommendations. The study's conclusions have implications for similar businesses operating in the Kurdish region as well as for Hungarian SMEs. They also provide insightful information about how to maximise working capital management for improved financial performance.