THE RELEVANCE OF FINANCIAL MANAGEMENT TO BUSINESS GROWTH
Financial management is relevant to business growth for a well balanced operation. As businesses in Nigeria are made up of small, medium and large scale enterprises need financial management to operate well. The ultimate aim of financial management is to plan and forecast the profit making and sourcing of fund for business growth. Money is needed in financial management and used in making plans work. It serves as a measuring device that can be used in measuring the plan in terms of naira, and outsiders, such as bankers and other lenders, will do the same.
In starting new business or expansion loan is required. The burden of proof in borrowing money is upon the borrower. You have to show the banker or other lenders how the money borrowed will be used and more important how and when you will repay back the loan.
The extended essay also look at budgeting, as organisation, whether economic, social, or political makes plans for an organisation. Without plan there is no longer an organisation but an uncoordinated assortment of individuals. Some business owners/managers carry plans in their head, some make rough estimates on their business and others express their plans in orderly and systematic manner.
An important feature of this extended essay is that the methods taken are in form of data collection through primary and secondary sources. The primary includes questionnaires and oral interview and secondary source include work of authors which were acknowledged.
Finally, the main findings and recommendations are based on the information on the conclusions drawn up to cap the work.