Identification of the Causes of Timely Availability of Working Capital Problem for Small and Medium Size Enterprises in Iran

Small and medium size enterprises play and important role in the economic development of Iran. However, they face difficulties such as timely availability of working capital problem. As a result, the main purpose of this study is to investigate causes of this problem as one of the most challenging problems of such enterprises. This applied and descriptive study uses a qualitative data collection method and a sample of selected managers in small and medium size enterprises located in the provinces of Tehran, Qazvin, Alborz and Mazandaran. To test our hypotheses, we first study characteristics of small and medium size enterprises as well as the principles and theoretical concepts of their working capital. Second, causes of timely availability of working capital problem in small and medium size enterprises are determined. Finally, based on semi-structured interviews, the opinion of selected company's managers regarding the timely availability of working capital problem is recognized. According to the Top ten method, the results of this study indicate that the roots and causes of timely availability of working capital problem in small and medium size enterprises can be investigated in two internal and external aspects i.e. the supply and the demand sides.