L26 - EntrepreneurshipReturn

This paper examines the impact of working capital management on firm performance in nine developing economies in Asia. Specifically, the study focuses on two critical aspects: the management of trade credit and inventory. The empirical findings reveal that effective management of these components significantly enhances the performance of financially dependent firms. In fact, during critical periods such as the 2008 financial crisis, these management strategies helped to boost performance considerably. However, no comparable association was observed in other firms within the sample. These results suggest that appropriate handling of trade credit and inventory can yield a significant performance advantage.

When starting a new business, entrepreneurs used the acquired experience, skills, and competencies. The paper aims to determine opinions on the most important competencies that entrepreneurs need to start their business. The research is based on the questionnaire to survey entrepreneurs and students of economics. We try to determine the differences in their opinions. We assume that the views of entrepreneurs already running a business near reflect the competencies’ real usefulness. We used the questionnaire as an instrument for data collection. When comparing entrepreneurs and students, statistically significant differences are in most competencies. Students evaluated entrepreneurial competencies significantly less important than entrepreneurs. Entrepreneurs’ opinions on competencies do not depend on enterprise size. Similarly, students’ views on competencies are not related to their gender. Our study suggests a significant discrepancy between students’ opinions on the importance of various competencies and reality.