Includes CD

Includes reference (66-67 p.)

'ABSTRACT The study was done to determine the extent to which financial mangers contribute to the success of SMEs in Nicosia. The objective of the study were; to investigate if there do exit a strong relationship between success and the financial manager's role which include determining working capital management (Cash management, account receivables management, and inventory management) investments financing (sources of financing) financial reporting and analysis and accounting information systems, to get practical knowledge on how the financial managers of a small enterprises operate to the attainment of the organizational goals and objectives and another objectives for this study is to recommend solutions that will help to foster and improve the financial management practices to peer organization. The study used trend analysis, correlation, linear regression, together with descriptive design and descriptive comparative. Thirty (30) questionnaires were distributed to respondents who were either owners or managers/directors and were the ones used for the analysis. The study found out that a great number of SMEs in Nicosia are in the services sector followed by manufacturing, many of them have been operating for more than 10 years, more than (73%) employed between 6-49, over (73%) are limited companies and more than (90%) of their annual sales revenue ranges from 2 million euros to 10 million euros. The finding further reveals that the extent of financial management is very high amongst SMEs (average mean). The theory of pecking order (Myers 1984) which state that management has to a preference to choose internal financing before external financing, was proven in this study of SMEs using internally generated funds as compared to borrowed funds. It was also proven the financial managers help their enterprise to provide information as to regard working capital management financing, investment information systems management, and reporting and analysis of the enterprise finances and expenditure. The recommendation from the study; include the State Planning Organization and SMEs Owners in Cyprus may use these finding as a way of improving business performance of SMEs in Cyprus since the SMEs are great contributors to the Cyprus Economy. The owners of SMEs should develop a positive attitude toward adopting the advices of financial managers so as to achieve desired business success. Key words: Financial Management, Success, Small and Medium-sized Enterprise (SMEs)'

1 INTRODUCTION

3 THE IMPORTANCE OF SMEs IN THE ECONOMY

5 Weak point of SMEs and related Challenges

6 Future importance of SMEs Sectors

8 STRUCTURE OF SMEs SECTORS

11 BACKGROUND OF THE STUDY

14 RESEARCH AIMS AND ONJECTIVES

15 STATEMENTS OF RESEARCH PROBLEM

15 HYPOTHESIS

16 ORGANIZATION OF THE RESEARCH WORK

18 CHAPTER 2

CHAPTER 2

LITERATURE REVIEW

18 INTRODUCTION

19 DEFINITION OF STRATEGTIC TERMS

22 THEORETICAL LITERATURE

22 Financial Management

23 Working Capital Management

25 Investment

26 Financing

28 Accounting Information Systems

29 Financial Reporting Analysis

30 EMPIRICAL LITERATURE

35 SUMMARY AND COMMETARY ON THE LITERATURE REVIEW

37 CHAPTER 3

RESEARCH METHODOLOGY

37 PURPOSE, SIGNIFICANCE AND SCPPE OF THE STUDY

38 CASE STUDY: NICOSAI(LEFKOSA) IN TRNC

39 DEFININTION OF RESEARCH METHODS

39 VARIOUS RESEARCH METHODS

41 RESEARCH METHODS ADOPTED AND JUSTIFICATION

42 METHOD OF DATA ANALYSIS

44 SOURCES OF DATA

45 CHAPTER 4

45 DATA PRESENTATION AND ANALYSIS OF FINDINGS

46 DISCUSSION OF THE EMPIRICAL RESULT

47 Demographic Information

47 Reliability Analysis

52 Correlation Analysis

59 Rgression Analysis

63 CHAPTER 5

DISCUSSION, RECOMMENDATIONS AND CONCLUSION

63 DISCUSSION

64 RECOMMENDATION

65 CONCLUSION

54 REFERENCS