Role Of Financial Management Practices In The Performance Of Small Enterprises In The Service Sector

Authors: Prajakta Shewale, Prof. Dr.Prashant Kalwade

Abstract: This study examines the role of financial management practices in enhancing the performance of small enterprises operating in the service sector. Financial management is considered a key factor influencing profitability, sustainability, and operational efficiency in small businesses. The research focuses on practices such as budgeting, cash flow management, working capital management, financial planning, record keeping, and adoption of financial technology. A descriptive and analytical research approach was adopted using both primary and secondary data sources. Information was collected from owners and managers of small enterprises through structured questionnaires and interviews. The findings indicate that enterprises implementing effective financial management practices demonstrate stronger financial stability, improved profitability, and better business growth. The study also highlights challenges such as lack of financial literacy, limited access to financial resources, and low adoption of financial technology. The research concludes that systematic financial management practices are essential for achieving long-term sustainability and competitiveness among small enterprises in the service sector.

DOI: https://doi.org/10.5281/zenodo.20326153