Developing an expert system for working capital management in SMEs

Working capital management can affect the profitability, risk and value of all businesses and it is more important for Small and Medium-Sized Enterprises (SMEs) compared to large-scale enterprises. Because SMEs are more dependent on short-term external financing sources such as supplier's credit and bank loans due to the limited long-term funding opportunities. However, some of the problems that these enterprises experience in the field of financing stem from the inadequacy in the field of financial management and one of the most important financial management problems is the inefficient management of working capital. Therefore, effective working capital management is an important factor for SMEs to increase their profitability and even to survive. In this context, the purpose of the study is to develop an expert system application (SME Emergency) that will perform financial analyzes for the working capital management of SMEs and provide comments and suggestions on the performance status of the enterprise according to the analysis results and thus contribute to business owners or managers in working capital management. In this direction, a web-based SME Emergency application has been developed by using expert systems technique from artificial intelligence technologies. In the development of this application, 2012-2020 period data of 283 companies whose stocks are traded in BIST All Index were used. The developed SME Emergency expert system reveals the general performance status of the enterprise in terms of working capital management. However, the success status of the enterprise on a variable basis is evaluated according to the industry (sector) average and shows its position according to its competitors with different success in the same industry (sector) and the industry (sector) average within the scope of working capital determinants. On the other hand, it provides a comparative representation of the status of the enterprise in working capital management related to sub-input items related to working capital management to the enterprises with different success in the industry (sector), industry (sector) average and previous years. Within this framework, the situation of the enterprise regarding working capital management is interpreted and if there is a failure, suggestion(s) are presented. As a result, the SME Emergency application reveals the situation of the enterprise in terms of working capital management, its status compared to previous years and its situation against its competitors in the industry (sector) in which it operates, through visuals. In addition, the SME Emergency application can be used by businesses of all sizes.