Cash Flow Management Impacting Entrepreneurship

CASH FLOW MANAGEMENT IMPACTING ENTREPRENEURSHIP
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Executive Summary
Entrepreneurs face a number of challenges in today’s competitive world. Businesses have
become versatile with technological advancements during contemporary times. Entrepreneurs are
tackling resources with problems in a more dynamic manner. There are a large number of
challenges such as cash flow management, employee hiring, time management, and delegation of
task, selecting what to sell, marketing strategy, capital, budgeting, and business growth and so
on. The scope of the current contemporary analysis deals with entrepreneurial venture in dealing
with challenge of cash flow management. Especially during breakthrough stage, such challenges
are immense in nature and needs to be tackled in a more dynamic manner. The current findings
of contemporary issue analysis reflect the several implications arising from troubles in cash flow
management. Most integral challenge is in business expansion and business growth that is
hampered by way of cash flow management ineffectiveness. With several other implications,
entrepreneurial ventures need to concentrate more on ways to tackle issues of cash flow
management and overcome the same.
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Table of Contents
CASH FLOW MANAGEMENT IMPACTING ENTREPRENEURSHIP....................................1
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Findings...........................................................................................................................................4
Conclusion and Recommendations..................................................................................................7
References........................................................................................................................................9
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Introduction
Contemporary entrepreneurial ventures are faced with large number of challenges (Welbourne,
Neck & Dale Meyer, 2012). With advent of technology and globalisation, entrepreneurial
ventures are faced with stiff competition, where they need to extend their core competencies.
With global slowing down in interest rates and various fraudulent surfacing, entrepreneurs often
face immense challenge in arranging for funds. Apart from arranging funds for their business
ventures, entrepreneurs face challenges such as employee hiring, time management, and
delegation of task, selecting what to sell, marketing strategy, capital, budgeting, and business
growth. In the current discussion of contemporary issues related to entrepreneurial ventures, it
was analysed that the most integral challenge faced is in management of cash flows. While other
issues can be dealt with, dealing with cash flows imposes tremendous amounts of challenge
(Hayward, Forster, Sarasvathy & Fredrickson, 2010). Some ventures have closed down due to
challenges faced in their cash flow management. The current scope of analysis deals with
highlighting some key findings that has been arrived at in this regard.
Findings
Entrepreneurial ventures in order to establish their businesses sources funds from varied avenues
(De Bettignies, 2008). While such sources of funds act as start-up cash inflows, most businesses
mistake them for using it for regular purposes. Positive cash flow in business happens when the
business gets the money. Payments, employee salaries and miscellaneous expenditures reflect
negative cash flow. This can often causes difficulties for the company, but there can be measures
taken to avoid negative consequences and move to positive cash flows. Effective cash flow
management requires attention on processes where cash influx or outflows takes place, with the
exception of profits or losses. Entrepreneurs need to determine their business’ break-even point.
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