An Empirical Study on Capital Structure in Small and Medium Enterprises
DOI:
https://doi.org/10.54741/ssjar.3.3.3Keywords:
small and medium enterprise, capital, industry, manufacturing, financingAbstract
Small and Medium industries are significant industries for industrialized and less developed nations, contributing to economic creation and employment. The sector employs millions of people across the world and is dominated by a high number of small and medium-sized enterprises. But globalization, intense rivalry, the revolution in information technology, and the increasing sophistication of customers are creating a strain on small and medium value chains. Over the last decade, the industry has faced the problems of fluctuating customer demands, short product lifecycles, and limited predictability. Delivering low-cost high-quality goods in a shorter amount of time are the greatest challenge for the SME’s. Therefore, it is vital to alter and enhance the current production by utilizing tactics that meet the needs of worldwide customers. However, manufacturers confront significant obstacles in deploying new systems, including limited financial resources, a lack of employees and time, little or no experience, and low confidence. Manufacturing is a complicated process, and capital generation is an important part of it. But due to many logistical, financial, and other issues, many firms fail to fulfill the necessities of the situation and thus incur losses. The need to incorporate the production process with lead time management can minimize the time wasted because of technical glitches and sampling issues and generate more capital for the enterprise.
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