Abstract:

Aim: The purpose of the current study is to investigate the application of strategic financial management in small and medium sized enterprises. Method: In the current study, literature on the application of financial management in small and medium sized enterprises was extensively reviewed and the common financial problems observed in small and medium sized enterprises were reported. Findings: Financial problems of small and medium sized enterprises has yet to be solved in a constantly changing world. As a result, their competitiveness with other businesses drastically decreases. Results: Since small and medium sized enterprises cannot easily survive in a national and international competitive environments, it is vital to analyze their financial circumstances and find long term and productive solutions to their everyday problems. Small and medium sized enterprises strong financial structures can easily be damaged by the businesses itself because their lack of ability to follow up with constant changes in financial market assurance problems during credit applications, high volume and/or low cost of credits, difficulty in entering into the market and finding alternatives finance sources, and the lack of an official finance departments.

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