In this research paper, the monetary results of Rajasthan's Micro, Small, and Medium-Sized Enterprises (MSMEs), which currently employ over 9.2 million people throughout 4.37 million registered units and account for 38% of the state's GDP, is examined in relation to working capital management (WCM). Using structured questionnaires and SPSS-based multiple regression analysis, the study tested three hypotheses that linked WCM components (liquidity, receivables, payables, and inventory) to profitability, working capital efficiency, and operational performance. Stratified random sampling was used to select 400, 385 acceptable responses from manufacturing clusters such as Jaipur textiles and Bhilwara handicrafts. All null hypotheses are rejected by the results, which show that WCM accounts for 67.9% of the variance in operational efficiency (Ho3: R² = 0.679, β_payables = 0.35), shows substantial associations with working capital efficiency (Ho2: r = 0.65 - 0.82), and 72.8% of the variance in profitability (Ho1: R² = 0.728, β_liquidity = 0.42, p < 0.001). On the basis of demographics, small business CEOs are young (41.3% between the ages of 31 and 40), educated (33% postgraduates), and dependent on a variety of funding sources (52.7%). In regards to the study's findings, enhanced WCM greatly raises ROA/ROE and improves operational durability against issues related to Rajasthan, such as payment delays. The recommendations support government-backed loan guarantees through RIICO/NABARD, JIT inventory systems, ERP digitization, and financial literacy training. One of the limitations is the cross-sectional approach; multi-state and longitudinal analyses should be investigated in future studies.