THE ROLE OF FINANCIAL MANAGEMENT IN ACHIEVING BUSINESS SUCCESS: A REVIEW OF LITERATURE

Abstract

Introduction: Financial management is crucial for small businesses, as it plays a vital role in their success. This study examines the impact of financial management practices on small business success. Methods: A survey was conducted with 100 small business owners to gather data on their financial management practices and business success. The data were analyzed using regression analysis to identify the relationship between financial management practices and business success. Results: The results indicate that financial management practices, including budgeting, cash flow management, and financial forecasting, have a significant positive impact on small business success. In particular, businesses that have better financial management practices are more likely to be profitable and experience growth. Discussion: These findings highlight the importance of financial management practices in small business success. Business owners who prioritize financial management are more likely to make informed decisions, avoid financial crises, and sustain long-term success. Conclusion: Small businesses that implement effective financial management practices are more likely to succeed. Business owners should focus on developing and improving financial management practices to ensure their businesses thrive.