The basic nature of a business influences the amount of working capital required.

 A trading organisation usually needs a smaller amount of working capital compared to a manufacturing organisation. This is because there is usually no processing.

 Therefore, there is no distinction between raw materials and finished goods. Sales can be effected immediately upon the receipt of materials, sometimes even before that. In a manufacturing business, however, raw material needs to be converted into finished goods before any sales become possible. 

Other factors remaining the same, a trading business requires less working capital. Similarly, service industries which usually do not have to maintain inventory require less working capital.