Target function of working capital management in small and medium businesses

This article describes the goal, functions, and specific aspects of working capital management in small and medium-sized businesses. Particular attention is paid to identifying the specific operating characteristics of small and medium-sized enterprises. It is substantiated that the target function of working capital management in SMEs is formed as a compromise between ensuring current liquidity, minimizing financial risks, and improving the efficiency of current asset utilization. The paper emphasizes the role of accelerating the turnover of inventory, accounts receivable, and cash as a key tool for reducing the need for additional financing. It is concluded that optimization of the structure and level of working capital is the most important factor in the sustainable development and maintaining the competitiveness of small and medium-sized businesses.