The Working Capital Management :A financial tool for manage the traditional Venezuelan SME

Working capital is composed by current assets (cash, accounts receivable and inventories) and current liabilities (accounts payable, notes payable and accrued liabilities payable), these are considered essential resources in the company to operate; managing them is a fundamental and daily task that allows to keep adequate resources to continue with the operations and prevent costly downtimes. Regardless of their size, businesses perform in an environment vulnerable to changes, therefore, managers must administrate proactively and interdisciplinary to be able to face new challenges, conflicts, and threats. This includes the handling of a suitable level of working capital to ensure smooth daily operations. The present article, as a result of an investigation in which a documentary analysis methodology was used, aims to analyze the techniques of the working capital administration as a financial tool for the management of the traditional Venezuelan SMEs. Accordingly, three sections are developed: theoretical foundations of the working capital management in SMEs and financial decision making; a review of investigations in the field of financial management; and last, actions that must follow the financial managers of SMEs to tackle new financial challenges.