Financial Management of Small Business

Micro and small businesses, classified as being based on the amount of earnings per year and the amount of wealth / assets it owns. In addition there are several types of micro and small businesses in the use of business profits. The first type: the profit is only enough to meet their needs of everydays life. The second type: the benefits in addition to his needs are still there are excess funds to save. The third type: the benefits collected for the preparation of business expansion. Sometimes a small and micro entrepreneurs who first type can be in the drive with additional capital from banks or financial institutions and immediately switch to the second type and so on. But not everything goes smoothly according to the original plan. Often occurs micro and small entrepreneurs have changed if the type, also changed his behavior, life style change as well. If that happens then that will bankrupt of business plus he was not able to pay their debts, causing bad credit. What is the solution? Until now, no one can provide the right solution for solving this problem. Because if you talk about the behavior of a quantitative measurement difficult. If any suggestion please write to this blog to share. Thanks.

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