Abstract
Working capital
management plays a crucial role in determining the financial stability,
liquidity, and profitability of small-scale industries. The present study
examines working capital management practices and their impact on the financial
performance of small-scale industries in the Jammu region. Primary data were
collected from industrial owners and managers through structured
questionnaires, while secondary data were obtained from financial records and
published reports. Statistical tools such as percentage analysis, correlation,
regression, ANOVA, and financial ratio analysis were used for data
interpretation. The findings reveal that efficient cash management, inventory
control, and receivables management significantly improve profitability and
operational efficiency of small-scale industries. The study further identifies
major working capital problems such as delayed receivables, liquidity
shortages, and limited access to institutional finance. The research highlights
the importance of effective working capital planning and financial management practices
for improving business sustainability and financial performance of small-scale
industries in the Jammu region.