Receivables Management Practices in Small Scale Enterprises

Abstract

This paper reports the findings of an empirical investigation into the trade credit management practices in small scale enterprises of Anantapur District of Andhra Pradesh. The study involved interviews with owner-managers in 95 SSEs which comprises of six divergent industrial groups. The findings shows that although short-term financial management practices improve as firms grow, there is a scope for the owner-managers of small businesses to strengthen their trade credit management in order to reduce costs and enhance business performance. Moreover, they have to consider other financial options also.