Financial Management of Tires Retail and Restaurant Business in Greater Jakarta

  • Sung Suk Kim Pelita Harapan University
  • Jacob Donald Tan Pelita Harapan University
  • Rita Juliana Pelita Harapan University
  • John Tampil Purba Pelita Harapan University
Keywords: Working Capital Management, Small and Medium Enterprises, Bootstrapping


This study aims to explore the financial management practices of
small-and-medium-enterprises (SMEs) in the Greater Jakarta (Jabodetabek). We investigate into 3 SME cases by conducting the semi-structured interviews with the owner-managers and using direct observations to know the practices of financial management of SMEs. Through the research, we have found six propositions related to the practice of short-term financial management. They apply bootstraps to ensure availability of working capital. They set aside cash reserves from retained earnings and minimize loans from financial institutions. They have the computerized system to track receivables facilitating working capital needs. They keep their
inventory control efficient to manage working capital. They screen customers using transactional records and reputations to minimize the risk of bad debts.