Improving SME performance: does working capital management enhance the effectiveness of financial inclusion?

Growth of the SME sector is traditionally an important driver of overall economic growth, particularly in emerging economies. SME growth is enhanced by access to finance (financial inclusion). In this study, we show that efficient working capital management has a positive influence on performance that is independent of the effect of financial inclusion. Our results remain robust to alternative measurements and estimations, and may be useful to national policymakers in developing strategies for SMEs' greater access to finance and introducing ways of improving financial management education and training for SME managers.