Abstract:
Small and Medium Enterprises (SMEs) play a vital role in the global economy, contributing significantly to
employment, innovation, and GDP. Despite their economic importance, SMEs often face challenges in
managing their supply chains and financial systems effectively. This paper aims to explore the intricate
relationship between supply chain management and financial systems within SMEs, with an emphasis on how
their integration can lead to sustainable growth. The research is conducted using a mix of secondary data and
analytical methods to assess the prevailing issues and propose strategic interventions. The study begins with a
comprehensive introduction to the nature of SMEs, their economic relevance, and the common operational
constraints they face. Following this, the paper outlines the need for efficient supply chain and financial system
integration, emphasizing cost control, risk management, and responsiveness to market demands.
The importance of the study is examined in the context of global competitiveness and digital transformation,
highlighting how SMEs can leverage integrated systems to streamline operations and improve financial
decision-making. The objectives are clearly defined, focusing on identifying integration challenges, assessing
their impact, and recommending best practices. Limitations include reliance on secondary data, generalizability
issues, and dynamic economic variables. A detailed literature review is conducted to analyze existing research
and theoretical frameworks relevant to the topic. The data analysis section delves into patterns, correlations, and
case studies drawn from secondary data sources such as government reports, industry publications, and
academic journals. The findings suggest that integrated systems can enhance efficiency, reduce operational
costs, and enable data-driven decision-making. The conclusion synthesizes the research findings and provides
actionable recommendations for SMEs aiming to achieve long-term sustainability through improved supply
chain and financial integration.
