CONSTRUCTION BUSINESS & PROJECT MANAGEMENT CONFERENCE 2022 · Vol. 2022, Issue 1

Sustainability of working capital management of SMEs in times of crisis

Lesego J Mothowagae and Makgopa F Tshehla

Keywords: Working capital management, construction management, sustainability, crisis

Abstract

The purpose of the study was to evaluate the sustainability of working capital management requirements for small-medium enterprises (SMEs) during crisis. The study adopted a quantitative method. Data were collected through a survey questionnaire from SMEs in the construction industry in Gauteng province, South Africa. This study employed purposive sampling with a sample size of 60 construction employees. Data analysis was undertaken using descriptive statistics. The study's findings reveal that businesses adopt working capital management practices, have key value metrics for working capital management, consistently review their working capital, and actively manage working capital in times of crisis. Working capital was also identified as a key performance metric and mainly driven by top management in the company. The study contributed to the body of knowledge by providing information on the importance of working capital in small businesses during a crisis and it also showed that working capital is viewed as a key performance indicator during the crisis by small businesses.