Analysing Liquidity Management Strategies of Small-Scale Industries during Demonitization in Trichy

Abstract

Emerging trends of globalization, mobility of resources, persons, government policies, market diversity endues a skill person to become an Entrepreneur. Unemployment rate is being reduced by growth of small and medium scale Industries. Engine is an important part to drive a car smoothly for longtime likewise a good financial management is very important to run a business for a long time and sustainable growth. Especially effective liquidity management helps to the business to grow continually and ensures continuous daily activities; sometimes monthly budget cost of liquidity crosses its limits due to economic situations and government policies, particularly Demonetization policy made huge effect on liquidity position of all small scale industries. Entrepreneurs faced many challenges to meet out their daily expenses, sometimes it has been affected production also; In this paper the author has discussed the impact of demonetization on small scale industries and various strategies they used to overcome such situation and suggestions to face these type of challenges in future.