Effective Working Capital Management And The Survival Of Business Organizations In Delta State, Nigeria

Abstract

This survey investigated effective working capital management and the survival of business organizations in Delta State, Nigeria. The study spotlighted the factors that influence the working capital requirements of firms and the symptoms of shortage of working capital and under capital. Structured questionnaire was employed in the course of gathering relevant data for the study and administered randomly on 80 employees of six manufacturing organizations in Delta State selected through multi-stage sampling procedure. Data for the study were presented on tables and analysed using simple percentage. The results showed that there is positive relationship between effective working capital management and the survival of business organisations in Delta State in particular and Nigeria in general. The study observed that effective working capital management minimizes the effect of over-trading and under-trading in the organisations. The study, however, recommended proper management of trade creditors, trade debtors and inventories would enhance the organizations’ survival.