Entrepreneurship Development

ENTREPRENEURSHIP DEVELOPMENT FOR RURAL FAMILIES 4(1+3)

Lesson 14 : Management of Financial Resources

Finance cycle

Many small enterprises fail to control finance as they fail to see the finance as resource to be controlled .To control finance one must understand the finance cycle.

Finance must be controlled and organized. If you have researched your business idea, you will invest funds in the enterprise and increased pool of funds. Some of the funds available will be committed to assets, fixed or current. Other funds will meet expenses and generate sales and profits. Profits are rewards, some to be withdrawn from the business and to reinvest to buildup investment and equity.