Work

Issues of financial liquidity of small and medium-sized trading companies: a case study from Poland

Year: 2020

Type: article

Abstract: Most often, the victims of financial crises are small and medium-sized enterprises.Very often, even short-term payment gridlocks can lead to their bankruptcy.All over the world, managers of such enterprises are trying to introduce solutions that will improve their financial security.Branch group purchasing organizations (GPOs) are a very popular method to improve the financial security and financial situation of small and medium enterprises.They are multi-stakeholder organizations using the effect of scale.It allows them to reduce costs, increase sales and gives many opportunities to build a policy of managing liquidity.The purpose of the article is to present the impact of branch GPOs on the financial liquidity of small and medium-sized enterprises.The research was conducted on a group of 96 Polish small and medium-sized commercial enterprises operating in the construction industry.The study showed that the analyzed units do not have problems with financial liquidity, due to the use of a strong scale effect.

Source: Journal of Entrepreneurship and Sustainability Issues

DOI: 10.9770/jesi.2020.8.1(25)

Author: Grzegorz Zimon

Institution: Rzeszów University of Technology

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $916