Analysis of individual micro-entrepreneur vision from the perspective of financial management

Abstract

In the business world, the management of an organization calls for the development of information to support decisions. However, this is not a reality for a significant part of micro and small enterprises in Brazil, as several studies have shown. On this theme, with a focus on individual micro-entrepreneurs 1 , the present study investigated how these businesspeople manage their finances and development. Methodologically, the study was supported by field research with 21 entrepreneurs in different business segments from the city of Volta Redonda (Rio de Janeiro state). Results indicated that 19% of respondents do not control cash flow and 76% do not analyze their financial results. Of those that use some kind of control, 67% monitor their finances by handwritten notes in notebooks. Regarding the sales forecast, less than half of the surveyed people do this type of control. Therefore, the surveyed micro-entrepreneurs need to develop financial and accounting management systems, focusing on a better financial control of their businesses. Although not conclusive, we believe the results obtained are related to the respondents' low level of education.

Mortality Risk Factors in Micro and Small Businesses: Systematic Literature Review and Research Agenda

“…The studies in this category were applied in private business and investigated the characteristics of companies and entrepreneurs [12,[71][72][73][74][75], customer relations [76], success factors [27,77,78], determinants of business survival [9,23,[77][78][79], factors that contributed to failure [15][16][17][80][81][82], and factors related to the performance of MSEs [19,24,[83][84][85][86]. Organizational difficulties in management involving finance [21,[87][88][89][90][91][92], environmental sector [93][94][95], quality systems [96], supply chain [97], innovation [3,[98][99][100][101][102][103][104]…”

“…Among the factors listed were the difficulties in economic and financial management, such as the lack of cash flow control, the lack of financial results analysis, the difficulty in separating the assets, rights, and obligations of the individuals and legal entities, high operating costs, and lack of investment [39,77,80]. The problems of working capital for operationalization [15,25], debts, and insufficient income [6,80,87] were also present.…”

“…Anholon et al [61] added the problems with sales, where difficulties are found in setting goals, managing and monitoring the activities of the sales teams, and achieving customer loyalty. Problems in accounting management [24,25,39,74,87] Lack of legal guidance [25] Sales management issues [8,17,27,61,73] Inventory management problems [61,86] Problems in logistics management [61] Quality management problems [3,13,39,60,82] Problems in purchasing management [61] Problems in strategic management [3,13,39,61,115] Operations management problems [39,60] Problems in personnel management [3,39,61,85] Problems in marketing management [3,23,39,60,82] Lack of strategic planning [3,16,25,27,62,65,108] Difficulty in obtaining credit [5,20...…”

The Key Success Factors in Empowering Zakat Microentrepreneurs Towards Financial Sustainability

“…Second, providers or lenders must be proficient in the use of management accounting tools that incorporate microfinance financial management. To properly monitor microfinance performance, management accounting tools are required to control revenue and cost (Najera Ruiz & Collazzo, 2021) and cash flow movement (De Amorim Braga et al, 2018). To attract microfinance entrepreneurs, they must first reduce borrowing costs (Gill et al, 2016) and efficiently manage working capital (Wolmarans & Meintjes, 2015).…”

Competencias emprendedoras e implicaciones educativas en contextos europeos: estudio comparado desde la perspectiva de profesionales

“…In the scarce scientific literature found, advice for the development of business ideas, decision-making, financial aspects, control of results and cash flow are identified as entrepreneurial needs (De Amorim et al, 2018;Galvão et al, 2019;Ghassan et al, 2022). Aspects such as lack of credibility and experience, lack of project management competences, problems with the team, inadequate marketing competences, resilience or the wide variety of support resources hinder their knowledge and potential (Ahmed et al, 2022;Nam et al, 2019, Mitic, 2022Shamsuddin et al, 2020).…”