WORKING CAPITAL AND BUSINESS CONTINUITY: MANAGING SHORT-TERM RESOURCES IN MICRO AND SMALL ENTERPRISES

Abstract

Working capital management is one of the major challenges facing micro and small enterprises, particularly due to the need to balance available resources, short-term obligations, inventory, accounts receivable, and cash flow. In this context, the efficient administration of short-term financial resources is crucial for maintaining liquidity and ensuring business continuity. This article aims to analyze the importance of working capital management for the sustainability and continuity of micro and small enterprises, highlighting the key financial tools used to control short-term resources. The study is qualitative, exploratory, and descriptive in nature, based on a literature review of books, scientific articles, academic journals, and institutional materials related to financial administration and small business management. The theoretical framework covers concepts such as working capital, cash flow, inventory management, accounts receivable, accounts payable, and liquidity. It is evident that inadequate control of these elements can compromise a company's ability to meet payment obligations, increase indebtedness, and hinder its survival in the market. Conversely, financial planning and the systematic monitoring of cash inflows and outflows can facilitate more efficient decision-making, risk reduction, and the strengthening of business viability. The study concludes that working capital management should be viewed as a strategic tool for the continuity and sustainability of micro and small enterprises.