The Impact of Financing Strategies on the Operational Performance of Institutions: An Applied Study on Small and Medium Enterprises in the Asir Region

Abstract

This study aimed to investigate the impact of working capital efficiency on the financial performance of small and medium enterprises (SMEs) in Asir region. Additionally, it aimed to explore the impact of the customer collection period on the financial performance of SMEs in the Asir region, as well as the impact of inventory turnover period on their financial performance. The study followed a descriptive analytical approach, with a sample consisting of 280, The study relied on SPSS to analyze the questionnaire and obtain the results.
The study found several key results, including, the results indicated a statistically significant impact of working capital efficiency on the financial performance of SMEs in Asir region, with the regression model explaining 60.6% of the variation in financial performance. There is a statistically significant positive impact of customer collection period on the financial performance of SMEs in the Asir region. There is a statistically significant positive impact of the inventory turnover period on the financial performance of SMEs in the Asir region. The study recommends the necessity of working to activate and improve the customer collection period in small and large establishments in the commercial sector in the Asir region due to its positive impact on the financial performance of the establishments, as well as the importance of taking into account the inventory turnover period and working to improve it because of its strong impact on the level of financial performance of establishments.
The study proposed conducting a research entitled: Obstacles to financing and their impact on the operational performance of institutions: an applied study on small and large institutions in the Asir region.