Abstract. This article is dedicated to investigating innovative approaches to managing working capital in small business entities under modern economic conditions. The article analyzes the essential methods for effectively managing working capital, the significance of technological and financial innovations, as well as the role of social media and digital marketing, and the challenges associated with their implementation. Additionally, the article aims to clarify the role of each innovative approach in maintaining the financial stability and competitiveness of businesses. It provides strategic recommendations for small businesses to operate effectively in contemporary conditions.