Effectiveness of Government Policies and Financial Assistance in MSME’s Performance and Employment Generation

Abstract

Micro, small, and medium enterprises (SMEs) play an important role in supporting economic growth, creating jobs, and driving innovation in many countries around the world. These businesses often face many challenges, including limited budgets and insufficient knowledge of effective financial management. One of the main tasks that MSMEs should focus on is business management, which directly impacts their day-to-day operations and overall wellbeing. Working capital management refers to the ideas and strategies a business uses to ensure the management of its current resources and liabilities. It includes managing cash, inventory, accounts receivable and accounts payable to balance revenue and profit. Given the importance of capital management for business success, the question arises: if MSMEs are trained in this area, will it promote business This article aims to explore the impact of providing working capital training to MSMEs on job growth. It is felt that by providing MSME holders and managers with the knowledge and skills necessary to effectively manage their capital, some positive results that result in overall business can be achieved. Effective management of working capital enables SMEs to maintain adequate capital and reduce the risk of financial distress. By providing education on investment best practices, MSMEs can increase their financial security and enable them to better weather economic downturns and uncertainties. This in turn contributes to the overall stability of the economic landscape