JOHN, Blessing Abecan
Department of Business Administration
Faculty of Administration
Nasarawa State University, Keffi
TSAKU, David Isaac
Department of Business Administration & Management
College of Administration and Business Studies
Nasarawa State Polytechnic, Lafia
AMADI, Uzoma Reginald
Department of Business Administration
Faculty of Administration
Nasarawa State University, Keffi
ABSTRACT
Small and medium scale enterprises (SMEs) have been highlighted as an important growth engine, a major
driving force and a pathway to sustainable development. Even though many new companies have been
founded, their mortality rate is quite high, especially in developing countries. Proper financial management
is especially important for supporting SMEs. This study examined the role of financing decisions and
working capital management in the performance of SMEs in Imo State. Multiple regression analysis was
used to estimate the model. The study found that working capital management and financing decisions have
considerable beneficial impact on SMEs’ performance in Imo State. The study therefore recommends that
in order to be competitive, SMEs owners and managers in Imo State should make sure they employ sensible
financial judgments by ensuring that they have enough money for routine operations.
Keywords: Financing decision, working capital management, small and medium scale enterprises,
performance