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The importance of financial management in small and medium-sized enterprises (SMEs): an analysis of challenges and best practices

Author

Listed:
  • Eugine Nkwinika

    (Johannesburg Business School)

  • Segun Akinola

    (University of Johannesburg)

Abstract

The object of research is the importance of monetary management in Small and Medium-sized Enterprises (SMEs), specializing in challenges, best practices, and future trends. Financial management in SMEs is an important aspect that influences their growth, sustainability, and competitiveness. The paper begins by defining SMEs and highlighting the significance of financial management for their success. It emphasizes the need for SME owners to understand financial concepts, make informed decisions, and prioritize financial planning to ensure sound business operations. Insights from real-world case studies showcase successful financial management practices adopted by SMEs.Government policies and support for SME financial management are also explored, with a focus on initiatives, tax incentives, and access to financial advisory services. These government interventions play a crucial position in empowering SMEs with the necessary sources and steerage for powerful financial management.Moreover, the evaluation delves into destiny developments, such as rising technology (AI, blockchain, IoT) and regulatory adjustments, and their capacity impact on economic management for SMEs. It discusses the challenges and possibilities in monetary forecasting, highlighting using information analytics and predictive modeling for improved accuracy.In conclusion, this review assessment underscores the significance of financial control for SMEs, emphasizing the want for monetary literacy, era adoption, and compliance with regulatory adjustments. By embracing first-class practices and authorities’ help, SMEs can reap long-term financial balance and thrive in dynamic commercial enterprise environments. As SMEs preserve to evolve within digital technology, powerful economic control remains vital for his or her sustainable increase and achievement.

Suggested Citation

  • Eugine Nkwinika & Segun Akinola, 2023. "The importance of financial management in small and medium-sized enterprises (SMEs): an analysis of challenges and best practices," Technology audit and production reserves, PC TECHNOLOGY CENTER, vol. 5(4(73)), pages 12-20, September.
    • Handle: RePEc:baq:taprar:v:5:y:2023:i:4:p:12-20
    DOI: 10.15587/2706-5448.2023.285749
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    References listed on IDEAS

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