Exploring Financial Management Practices Of Micro-Entrepreneurs At Muadzam Shah, Pahang

Abstract

Finance and accounting are two distinct but interconnected disciplines within the field of business and finance. Financial is a process after accounting. In terms of business operation, most micro-entrepreneurs struggle with the failure of financial management and inadequate knowledge and practice of it. Inefficient financial management has led to issues of financial leakage, theft, and instability that cause bankruptcy. Therefore, this study aims to explore financial management practices among micro-entrepreneurs around Muadzam Shah. The qualitative study that involved seven (7) micro-entrepreneurs from various backgrounds were selected as informants using purposive sampling. The in-depth interview face-to-face method is used as a data collection technique with the thematic method of inductive analysis to analyze the data. The study found that financial management practices among micro-entrepreneurs are still at a minimal level. The business-related basic skills such as cost determination, pricing setting, and cash flow preparation are also major problems. The study suggests that there is a need for immediate action from certain parties, including the entrepreneur themselves, to improve their financial management skills and practices. Several recommendations have been put forward to overcome this problem, especially the design and development of applications that facilitate cost calculation, pricing, and the provision of business cash flow easily and quickly, which can be helpful for micro-entrepreneurs. Overall, the study provides useful input for designing and organizing courses related to financial management for micro-entrepreneurs. This is an important area of research, as micro-entrepreneurs play a significant role in the economy and can benefit greatly from improving their financial management skills and practices.