Exploring Working Capital Practices in Albanian SMEs: A Descriptive Analysis of Financial Decision-Making
| Dublin Core | PKP Metadata Items | Metadata for this Document | |
| 1. | Title | Title of document | Exploring Working Capital Practices in Albanian SMEs: A Descriptive Analysis of Financial Decision-Making |
| 2. | Creator | Author's name, affiliation, country | Rudina Lipi; Finance and Accounting Department, University of Vlora Ismail Qemali, Vlorë, Albania; Albania |
| 2. | Creator | Author's name, affiliation, country | Ilirjan Lipi; <p>Department of Business Administration, University of Vlora Ismail Qemali, Vlorë, Albania</p>; Albania |
| 3. | Subject | Discipline(s) | |
| 3. | Subject | Keyword(s) | working capital practices; financial literacy; owner decision-making; financial planning gaps; SMEs |
| 4. | Description | Abstract | Abstract
This paper presents a descriptive study that examines financial management practices in small and medium-sized enterprises (SMEs) in Albania, with a specific focus on working capital components. The analysis is based on a structured questionnaire completed by firm representatives, covering decision-making, owner qualifications, use of software, cash planning, inventory control, and trade credit policies. While many firms report using digital tools and preparing cash budgets, overall financial practices remain largely intuitive and informal. A significant share of decisions is made by owners with limited financial or accounting education, and key elements such as cash surpluses, shortages, inventory levels, and credit sales are handled without structured policies. These conditions may contribute to inconsistencies in managing short-term financial resources, potentially creating anomalies that threaten the firm’s financial stability. The study does not address other areas of financial decision-making but aims to shed light on common working capital practices and highlight the need for stronger financial awareness and planning capacity within SMEs and among their leadership. Key words: working capital practices; financial literacy; owner decision-making; financial planning gaps; SMEs JEL Classification: G30; G53; D81; L26 |
| 5. | Publisher | Organizing agency, location | |
| 6. | Contributor | Sponsor(s) | |
| 7. | Date | (YYYY-MM-DD) | 2025-04-11 |
| 8. | Type | Status & genre | Peer-reviewed Paper |
| 8. | Type | Type | |
| 9. | Format | File format | |
| 10. | Identifier | Universal Resource Indicator | https://conferences.univ-danubius.ro/index.php/EIRP/EIRP2025/paper/view/3645 |
| 11. | Source | Journal/conference title; vol., no. (year) | International Conference EIRP; 20th International Conference on European Integration - Realities and Perspectives |
| 12. | Language | English=en | en |
| 13. | Relation | Supp. Files | |
| 14. | Coverage | Geo-spatial location, chronological period, research sample (gender, age, etc.) | |
| 15. | Rights | Copyright and permissions | Authors who submit to this conference agree to the following terms: a) Authors retain copyright over their work, while allowing others to freely access, use, and share the work, with an acknowledgement of the work's authorship and its initial presentation at this conference. b) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution and subsequent publication of this work (e.g., publish a revised version in a journal, post it to an institutional repository or publish it in a book), with an acknowledgement of its initial presentation at this conference. c) In addition, authors are encouraged to post and share their work online (e.g., in institutional repositories or on their website) at any point before and after the conference. |