---

Guest post by: Journal of Development Entrepreneurship Become an Author

Tweet

---

---

Whereas the enterprise managers are well aware of the importance of external finance, they seem to underestimate the importance of financial management. This is an issue that the entrepreneurs did not raise directly themselves as a constraint, but something that was deduced from analyzing the empirical data.

In the focus group discussions, it became quite clear that many of the financial problems raised would not best be addressed by additional capital resources, but by better financial management. Cash-flow problems are quite common. There are also several leakages as a consequence of poor credit management, theft/fraud and not using resources efficiently enough. In general, the financial management problems boils down to a lack of systematic use of record-keeping and being able to monitor and interpret these records so that the appropriate action may be taken. This problem is compounded by what appears to be a relatively poor understanding of the macroeconomic context among the majority of business leaders. The mechanisms behind interest and exchange rate fluctuations are for example quite often poorly understood. This is likely to have an impact on their ability to plan for the future. To grow, enterprises thus must develop better systems for financial management and obtain an adequate understanding of economics so that they may develop better ideas on what the future might hold.

Constraints of growth-oriented enterprises in the southern and eastern African region
Journal of Developmental Entrepreneurship, Oct 2002 by Trulsson, Per

Related Articles

  Constraints of growth-oriented enterprises in the southern and eastern African region
  Conclusion: Constraints of growth-oriented enterprises in the southern and eastern African region
  6.3 Limitations of Enterprise Survey data for gender analysis: Gender Entrepreneurship and Competitiveness in Africa 2007
  Access to Finance: Constraints of growth-oriented enterprises
  Methodology: Constraints of growth-oriented enterprises in the southern and eastern African region
  The Nature of Growth Oriented Enterprises: Constraints of growth-oriented enterprises in the southern and eastern African region
  Market Orientation and Competition : Constraints of growth-oriented enterprises
  5.0 Micro Enterprises - What are they?: Entrepreneurship and Small Business Enterprise Growth in Uganda
  6.0 Constraints to small business growth: Entrepreneurship and Small Business Enterprise Growth in Uganda
  Information and Networks: Constraints of growth-oriented enterprises in the southern and eastern African region
  Human Resources : Constraints of growth-oriented enterprises
  5.0 How is the performance of businesses affected?: Gender Entrepreneurship and Competitiveness in Africa, 2007
  4.1.1 Constraints faced by women in the MSE sector: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005
  References: Constraints of growth-oriented enterprises in the southern and eastern African region
  4.2 The profile of growth-oriented women: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005
  3.3 Major Constraints facing the MSM sector: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005
  Mobile Application Development and Enterprise Mobility
  1.0 Overview: Gender Entrepreneurship and Competitiveness in Africa, 2007
  Policies and Regulations: Constraints of growth-oriented enterprises
  1.7 Promoting entrepreneurship: Working Out of Poverty

Related Forum Posts

No B.S. Time Management
Different Hats
Re: Greetings from Toronto!
Future Financial Corporation
Re: How to get small business loans for small business

Share this article. Fund someone's dream.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

How To Make People Want To Buy Your Product

Classic Delegation Skills Challenges For Managers

How to Find the Right Words Every Time

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.