THE ROLE OF FINANCIAL MANAGEMENT IN THE SUCCESS OF STARTUPS
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Abstract: THE ROLE OF FINANCIAL MANAGEMENT IN THE SUCCESS OF STARTUPS
This study examines the role of financial management in the success of startups. Objectives include identifying critical financial management practices for startups, evaluating their impact on startup performance, and assessing common financial challenges faced by startups. A survey research design is used to collect data from startup founders and financial managers. Using Taro Yamane's formula, a sample size of 250 startups in Lagos, Nigeria, was determined. The reliability coefficient score of the survey instrument is 0.87. Findings indicate that effective financial management, including cash flow management and financial planning, is crucial for startup success, with significant impacts on growth and sustainability. Recommendations include providing financial management training for startup founders and developing tailored financial tools to support early-stage businesses.
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