indicate that financial management for small and medium enterprises may be of
significant interest since they can afford to stay and grow within the business community. Long term
financial management is concerned with planning of ways to make the optimal investment in fixed assets,
the company's ability to take the right level of debt, and overall profitability. On the other hand, short-term
financial management is concerned with problems related to financing working capital (i.e. looking for
sufficient funds to meet short-term payments -financing and operating). Berley and Westhead (1990)
argued that maintaining proper financial management is a main factors to achieve competitive success.