Optimistic Small Business Owners, But Still Face Challenges In The Middle Of Covid

Estimating interest rates to compare the cost of online products with traditional credit products was difficult for focus group participants. For example, when asked to compare a credit card with a short-term loan described in non-traditional language, it was wrongly guessed that the short-term loan was cheaper. In addition, the estimate of interest rates is further complicated by additional rates for online products.

Uncertain cash flow can lead to major financial management problems for small businesses. If a company does not have healthy cash flow, it may have to give up new opportunities to meet current financial obligations. Unfortunately, this can mean that a company never realizes its full potential because homeowners cannot take potentially lucrative risks. The business plan must include financial forecasts that take into account start-up costs, operating costs, taxes and fees, emergency costs and estimated income. If forecasts show that the company will struggle to reach the balance within a reasonable time or that it will not have the necessary cash to cover the necessary costs, reconsider your plans. Having enough money to cover accounts is a must for any business, but it is also necessary for any individual.

Broken equipment, a leaking roof or a car accident with a company can be extremely expensive. One way to do this is of course to fill in a room for maneuver in your budget and put some money aside so that you can handle the situation. Forty-seven percent of all owners reported invoice generator vacancies they couldn’t fill, 2 points less than in December. 36% have vacancies for skilled workers and 22% have vacancies for unskilled workers . Fifty-five percent of homeowners reported few or no qualified candidates for the positions they attempted to perform .

Money management becomes even more important when money flows to business. While business accounting and tax management may fall within the capabilities of most entrepreneurs, professional help is often a good idea. The complexity of a company’s books increases with every customer and employee, so getting accounting help can prevent it from becoming a reason not to expand.

Because of their important role in job creation, GDP growth, entrepreneurship and innovation, small and medium-sized enterprises are recognized as drivers of socio-economic growth, both in developed and emerging economies. Therefore, the importance of SMEs for the Turkish economy and society in Turkey is much greater than in other emerging and developed countries. Small and medium-sized companies face a number of challenges, while problems arising from “financial mismanagement” are reported as the main causes of business failure in SMEs. Strategic financial management, this is a research area that has attracted the interest of researchers after 2010, It is one of the main management areas of SMEs, because of its vital role in survival, the growth and performance of SMEs.