Running a business isn’t just about generating sales — it’s about having enough cash at the right time. Many MSMEs in India are profitable on paper but still face daily cash stress. The reason is often simple yet overlooked: working capital. In this article, we’ll explain the working capital meaning, why it is critical for MSMEs, and the real reasons businesses struggle to manage it effectively. What Is Working Capital? (Simple Meaning) Working capital is the money a business uses to manage its day-to-day operations. In simple terms: Working Capital = Current Assets – Current Liabilities Current assets include: Cash and bank balance Inventory (raw material, finished…