A study on financial management in micro and small companies in Quarta Colônia

Abstract

In a competitive environment, effective financial management emerges as the key to the survival and expansion of organizations. Given this scenario, this study presents an analysis of the importance of financial management in Micro and Small Businesses (MSEs), as well as identifying the most common characteristics, difficulties and problems faced by small businesses. The objective of this study is to analyze and propose strategies to overcome common financial difficulties faced by MSEs in order to promote their long-term sustainability and growth. The research was based on a literature analysis and a practical study of financial management, identifying the main challenges and recommended strategies to address them. The lack of working capital can harm cash flow, but it can be mitigated through strategies such as negotiating payment terms and optimizing processes. Limited access to credit can be overcome with financial partnerships, financial transparency and accurate records. Inventory management and cash flow control can be improved with automation and data analysis. Managers' lack of financial knowledge can be corrected through financial education, consultancy and financial management software. For the sustainable financial health of these businesses, it is essential to face these challenges with proactive approaches. Overcoming these difficulties requires continuous investment in financial knowledge, strategic partnerships and the use of technology. By adopting these strategies they can mitigate risks, ensure a solid financial foundation and promote long-term sustainable growth.