International Journal of Economics, Business Management and Accounting
Vol. 7 No. 1 (2025): January 2025

Analysis of Financial Management to Enhance Profitability in Micro, Small, and Medium Enterprises (MSMEs)

Zendrato, Minta Wati (Unknown)
Octafian, Ray (Unknown)



Article Info

Publish Date
30 Jan 2025

Abstract

This study seeks to examine financial management to enhance the profitability of Micro, Small, and Medium Enterprises (MSMEs) through a qualitative methodology. A case study was performed at Toko Barokah, Gembongan, Karangjati, an MSME within the trading sector. Effective financial management is crucial for the success of a business, particularly for MSMEs that frequently encounter difficulties in cash flow management, financial record-keeping, and financial decision-making. Data for the research was gathered via comprehensive interviews, observations, and documentation. The findings indicated that Toko Barokah continues to encounter multiple challenges in financial management, including disorganized transaction records, inadequate differentiation between personal and business finances, and limited utilization of financial technology. These limitations hinder the store's capacity to optimize profitability. Nonetheless, there are contributing factors, including the business owner's dedication to acquiring financial management skills and the substantial market potential that remains untapped. This study advocates for enhancing financial record-keeping through the utilization of straightforward applications, offering financial training to entrepreneurs, and adopting superior cash flow management techniques. By implementing these measures, Toko Barokah is anticipated to enhance its profitability sustainably. This research offers valuable insights for other MSMEs in effectively managing finances to facilitate business growth

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Journal Info

Abbrev

ijebma

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

International Journal of Economics, Business Management and Accounting (IJEBMA) is a research journal in the discipline of economics, business, management, information management, and accounting which is aimed to contribute to a novelty or state-of-the-art academic development or real-world business ...