The Impact of Working Capital Management, Capital Structure, and Financial Planning on Micro Business Profitability in MSMEs Receiving the KUR Program in Surabaya City
Quantitative analysis reveals the significant effects of capital structure and working capital management on profitability in MSMEs, suggesting integrated strategies.
Key Points
Capital structure significantly improves profitability in micro businesses, emphasizing its importance in financial management.
Results indicate that working capital management also positively impacts profitability, following the capital structure.
The study used Structural Equation Modeling–Partial Least Squares to test relationships among financial practices.
Findings highlight the need for integrated financial strategies to enhance the sustainability of micro enterprises.