Liquidity Problems of Small Enterprises

Small enterprises are experiencing heightened levels of competitions and problems. Adequate Liquidity is a key driving force for managing business enterprises successfully by reducing such problems. It is also necessary to find out reasons of the liquidity problems of small enterprises and solutions to overcome such problems for ensuring successful business environment. It is difficult for small enterprises to raise enough capital from different sources because of complex and time consuming process. As a result, these enterprises are unable to implement an appropriate financial and managerial system to operate their businesses competitively. If these problems persist for long-time, entrepreneurs are bound to stop their businesses. Moreover, the findings of the study indicate that small enterprises are facing difficulties to get enough financial support from banks and financial institutions due to difficult terms and conditions imposed by them. So, a study in this field is meaningful to understand current scenario of the liquidity problems of small enterprise. This study also evaluates the role of banks to support small enterprises to solve their liquidity problems.