Journal of Statistics Applications & Probability

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This study examines how managerial skills and inventory management affect the financial performance of SMEs in Hungarys Business Products and Services sector. It employs a mixed-methods approach, combining qualitative research through semi-structured interviews with 73 inventory and financial managers, alongside a quantitative survey involving 210 participants representing various SME experiences. Qualitative methods like thematic and hermeneutic analysis are used to explore participant experiences deeply, while the quantitative survey assesses specific variables. The findings reveal a consensus among participants on the pivotal roles of managerial competence and advanced inventory management practices. Managerial competence encompasses data-driven decision-making and adaptability, while advanced inventory techniques like Economic Order Quantity (EOQ) and Activity-Based Cost (ABC) analysis significantly impact profitability. Inventory management is identified as a key mediator between managerial decisions and financial outcomes. The study emphasizes the importance of investing in managerial development, education, and sustainable growth for SMEs. Recommendations include adopting advanced inventory management techniques, prioritizing customer satisfaction, embracing continuous improvement, expanding globally, and promoting knowledge sharing to optimize SME operations. These insights offer practical guidance for SMEs to enhance growth and competitiveness across diverse business settings.

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