Author: Swati Sinha
Financial Management Challenges in SMEs
Karadag (2015) states that small and medium-sized establishments (SMEs) are crucial drivers of socio-financial boom in each advanced and developing economies. In Turkey, ninety nine% of all organizations fall into the SME category, making their importance higher than in other rising and developed countries. However, SMEs face demanding situations, specifically bad financial management, that is a first-rate purpose of business screw ups. Strategic economic management (SFM) is a key managerial vicinity for SMEs, as it plays a vital position in their survival, growth, and performance. This paper aims to analyze the significant function of monetary control and perceive the challenges and practices that impact organizational overall performance in Turkish SMEs from a strategic management attitude. The paper provides the significance and challenges of SMEs in Turkey, opinions on the literature on strategic and monetary control in SMEs, and discusses the current strategic economic control concept, implications of strategic economic management practices for SMEs in Turkey, and the relationships between strategic economic control practices and SME overall performance.
Money Perspectives From Human Ecology
Rosemary Walkere (1992) states that in human ecology/domestic economics, money is a scarce resource that provides access to goods and services necessary for the survival of individuals and families in a market economy. Decisions about acquisition, allocation, and use are important parts of courses and research in consumer economics, financial management, and family financial counselings. This article examines the meaning of money from these perspectives. It also examines the role of money in human ecology and home economics in a new way of thinking about the value of money.
Intelligent finance and change management implications
Guo and Polak (2023) explores the implications of intelligent finance on change management and provides insights into how organizations can effectively manage change to achieve desired outcomes. The study examines the case of Ping An, a leading insurance company in China, which has successfully implemented intelligent finance and change management strategies. The paper begins with a literature review that provides an overview of the concept of intelligent finance, the relevance of change management in the context of intelligent finance, models, and frameworks for intelligent finance, and approaches to change management. The case analysis of Ping An includes descriptive statistics, inferential statistics, regression analysis, and qualitative findings. The paper concludes with implications for practice and theory, contributions of the study, and recommendations for future research. Overall, this paper contributes to the growing literature on intelligent finance and change management and provides practical insights for organizations seeking to adopt intelligent finance.
Communication Challenges in Private Finance Initiative Projects at Facilities Management Stage
Kipli (2022) ET ALL states the communication challenges faced by clients and facilities management managers in Private Finance Initiative (PFI) projects in Malaysia. The research uses a qualitative method and interviews with engineers and facilities managers. The challenges identified include breakdown of communication, human error, lack of understanding, time-consuming, and misunderstanding. To address these issues, strategies such as meetings, inspections, and reminders are used. To ensure smooth communication during operational and maintenance, respondents suggest verification from the end-user, conducting technical meetings, following procedures, and maintaining good relationships between parties. To improve communication, the authors suggest using mobile applications, integrated systems, roles of concessionaires in understanding the Concession Agreement, minimizing human error, and improving the Concession Management Management System (CFMS). Direct communication using instant messages is preferred. Facilities management is a long-term relationship between the client and concessionary, and every project has its uniqueness and specific meaning.
Data Analysis for Risk Management—Economics, Finance and Business
Jajuga (2023) states that the evolution of risk management in economics, finance, and business can be attributed to the development of theoretical tools of risk analysis, instruments of risk management, and regulations in the area of financial risk. Theoretical tools of financial risk analysis include Macaulay duration, Markowitz portfolio theory, Capital Asset Pricing Model, option-pricing model, and advanced model to estimate volatility. Instruments of financial risk management mainly consist of derivatives, which have been developed primarily in the last 50 years in exchanges like Chicago Board of Options Exchange and Chicago Mercantile Exchange.
Financial Literacy and Risk Management: A Study on Small Independent Women Entrepreneurs
Maharana (2023) ET ALL conducted a study on small independent women entrepreneurs aimed to identify the impact of financial literacy on risk management practices and explore factors contributing to their development. The study found a significant positive relationship between financial literacy and risk management among small independent women entrepreneurs. Women entrepreneurs with higher financial literacy levels were more likely to engage in effective risk management practices, such as regular financial monitoring, contingency planning, and diversification of income streams. Financial literacy was crucial in empowering women entrepreneurs to make informed decisions about their businesses and manage risks effectively. Access to finance is also a significant predictor of financial risk management among women entrepreneurs.
Performance Evaluation of Small Finance Banks in India
Kundu (2022) shows the Small Finance Banks (SFBs) a recent innovation in the Indian banking system, aiming to provide basic banking services and credit services with a differentiated model. The challenge for these banks is to construct a low-cost liability portfolio and an affordable lending structure supported by robust technology. The study finds that SFBs have concentration risk on assets and liabilities side of the balance sheet, with low current and savings account deposits and reliance on bulk deposits. The Reserve Bank of India (RBI) differentiates SFBs from universal banks by requiring a net worth of 100 crore and a priority sector lending of 75% of Adjusted Net Bank Credit.
Analysis of the Impact of State-Owned Banks on the Sustainability of Public Finances
Davydenko (2023) ET ALL analyze that involves an empirical study of the cash flow of public funds to state-owned banks and the reverse cash flow to determine the impact of the activity and stability of public finances. The study highlights the costs associated with recapitalising state-owned banks, which disrupt the stability of public finances, create additional debt dependency for Ukraine, impose an additional burden on public finances, and lead to structural changes that reduce funding for social spending. Ukrainian taxpayers are financing the inefficient activities of state-owned banks while experiencing reduced investments in education, healthcare, social protection, environmental protection, and other essential areas.
Sources of Finance for Enterprises in India: Difficulties and Solutions
Vashi (2022) conducted a study which aims to identify the challenges faced by different-sized enterprises (MSMEs) in finding financing and utilizing funding sources. The research focuses on the lack of finance-related literacy among MSMEs owners, which is a significant obstacle to finding and utilizing formal sources. The results support prior studies that formal sources like banks are under-utilized compared to non-formal solutions of financing individual and group assets. The main obstacles to the under-utilization of formal sources are inadequate collateral assets and entrepreneurs’ lack of financial literacy. The study suggests that the need for finance varies depending on the MSME’s life-cycle stage.
Green Finance Initiatives in India
Ghosh (2022) states as per the IUP Journal of Accounting Research & Audit Practices discussion on Green Finance Initiatives in India, a new dimension in the finance domain that aims to incorporate environmental protection into economic profits and achieve ecological balance. The study focuses on the Indian scenario with regard to Green Finance initiatives. The objectives of the study include understanding the concept of Green Finance, analyzing the various products and services available under Green Finance, understanding best practices for promoting Green Finance globally, elucidating recent trends in Green Finance in emerging India, and enumerating the challenges and way forward for Green Finance in India. The methodology used is a theoretical framework built based on existing literature. The study could benefit policymakers and researchers in understanding the challenges and the way forward concerning Green Finance in India. The study is descriptive in nature, analyzing Green Finance initiatives in India based on various secondary sources like published papers, websites, and government reports.
Conclusion : In Conclusion, the challenges and practices in financial management, risk management, and sustainability in various economic and financial contexts. Small and medium-sized enterprises (SMEs) play a crucial role in driving socio-economic growth, but face significant financial management challenges that can impact their survival and growth. Understanding the dynamics of strategic financial management is essential for enhancing SME performance. The role of money in human ecology and home economics provides valuable insights into financial resources’ role in individual and family well-being. The case of Ping An in China emphasizes the importance of adapting to technological advancements in finance. Communication challenges in Private Finance Initiative (PFI) projects in Malaysia are identified as key hurdles that need to be addressed. Risk management is a critical aspect of economics, finance, and business, with instruments like derivatives playing a crucial role. Financial literacy plays a vital role in empowering individuals to make informed financial decisions and manage risks effectively. The analysis of state-owned banks’ sustainability highlights the need for more efficient and accountable banking systems.
References
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Kipli, K., Sidek, N., Fara, D. M., Shariffah Zatil Hidayah, S. J., & Zaini, F. (2022). Communication challenges in private finance initiative projects at facilities management stage. IOP Conference Series.Earth and Environmental Science, 1067(1), 012080. doi:https://doi.org/10.1088/1755-1315/1067/1/012080
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