Working Capital Management Problems Of Scrap Traders In Thiruvanthapuram District

Abstract

Working capital management is a critical aspect of financial management that ensures the smooth functioning of day-to-day business operations, especially in small and informal sector enterprises. Scrap trading plays a significant role in the recycling economy; however, traders often face financial constraints that affect their working capital efficiency. The present study aims to analyse the working capital management practices and identify the major problems faced by scrap traders. The study is based on both primary and secondary data, with primary data collected from 90 scrap traders using a structured questionnaire through simple random sampling. The study adopts a descriptive and analytical research design and employs statistical tools such as correlation, ANOVA, and Z-test for data analysis.

The findings reveal that most scrap traders belong to the low to middle-income group and possess moderate levels of education and experience. The correlation analysis indicates that working capital is positively influenced by factors such as experience, income, education, and access to credit. The ANOVA results show a significant difference in working capital management among different types of scrap traders, while the Z-test reveals a significant difference based on gender. The study also identifies key problems such as irregular cash flow, price fluctuations, delayed payments, and limited access to formal credit. The study concludes that improving access to financial resources, enhancing financial literacy, and strengthening market support systems are essential to overcome working capital management problems. Effective policy measures and better financial practices can significantly improve the efficiency and sustainability of scrap trading businesses.