Financial Management is one of the main reasons many startups fail. And, sadly in many cases this is caused by the entrepreneur themselves, making them the biggest enemy to their own businesses.
Financial mismanagement is mostly as a result of all or some of the following reasons:
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1. Lack of financial education and aptitude
Lack of financial education may cause entrepreneurs to live from hand to mouth i.e. cash is accounted for and is spent as it comes into the business. Financial education allows the entrepreneur to know in advance how the business is doing financially and to be able to take corrective measures to ensure the business survives and is profitable.
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