The impact of inventory management on the profitability of small businesses in Bangladesh

Abstract

The growth and development of small and medium-sized enterprises (SMEs) are essential for the survival of any economy. Among the key factors contributing to the success of small businesses, inventory management plays a vital role. This study evaluates the inventory management practices of small businesses in Bangladesh. Specifically, it examines the impact of inventory value on the profitability of these businesses over a 10-year period. The analysis is conducted using a regression analysis framework. The findings reveal a significant and positive relationship between inventory management and the profitability of small businesses in selected regions of Pakistan. Based on these results, we conclude that efficient inventory management is crucial for improving profitability in small enterprises.

Keywords: Inventory Management, Profitability, Small Businesses, Bangladesh.