What are The impact of inventory management on profitability of small scale enterprise?

Inventory management can play an important role in the profitability of a business in a way,,,

for example

If we hold a lot of inventory that means we spend (outflow of cash) and which can impact of our business profitability and in the same way if we hold a minimum in inventory that means much inflow that can lead to a better profitability, both of these end have to be cater very carefully. A number of techniques are used to control the inventory management such as EOQ Model, just in time techniques and and in modern era ERP system is one of the best example of inventory management system to improve the profitability of the business.

As far as concerned with small scale enterprises inventory management play a vital role for the profitability of the business because generally it is presumed that small scale business has a little access on resources and if they spend all their money on the inventory then they do not have any cash for future and in this way they face serious problems such as might be loss of business. So the small scale businesses must act in this way that they hold a level of inventory that does not impact on its survival, they must use techniques to inventory management and in this way they get much more profits than expected.