Microenterprise Cash Management Training for Mitigating Financial Distress

Abstract


 
 
 
 
 
 This community service activity is designed to provide guidance to the Tamangapa Village community, particularly individuals involved in businesses, on effective cash management practices to mitigate the risk of financial failure (financial distress) and enhance their business's survival and competitiveness. The chosen approach for supporting this community service program is the participatory method, which involves direct involvement of partners in all aspects of the activity, starting from the preparation stage through to the implementation of the activities. The primary form of activity is conducting cash management training meetings aimed at preventing financial distress. The research findings resulting from this community service activity indicate that the application of participatory methods and cash management training has led to noticeable improvements in the financial management abilities of the Tamangapa Village communities with businesses. As a result, participants have gained a better understanding of effective cash management practices. Moreover, the evaluation and monitoring of the activity's implementation have demonstrated that participants have become adept at identifying potential risk areas within their businesses that could lead to financial distress. They have also proactively implemented suitable measures to address these risks. Additionally, the participants now recognize the significance of maintaining organized and accurate financial transaction records, which has contributed to enhancing the sustainability and competitiveness of their businesses. The results of this service activity indicate that the cash management model, combined with a participatory approach, is both effective and sustainable in aiding rural communities or areas with high levels of entrepreneurship to overcome financial challenges and bolster the competitiveness of their businesses.