Kathmandu. The number of small, small and medium enterprises (SMEs) has been increasing in recent years. However, there is a lack of financial literacy to become a successful businessman.
In this context, Nepal Rastra Bank (NRB) has issued a financial notice to the micro, small and medium enterprises (SMEs) on how to become successful entrepreneurs. According to NRB, financial literacy is an essential element for business success. “Correct financial knowledge, capacity, behavior, thinking and discipline are required while operating a business without registration or registering, operating, expanding and closing a formal business,” the NRB has stated.
Key Financial Aspects to Pay Attention to
The right choice of business plan and financial services
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- Business plan, primary capital, source, partnership or other option, evaluation of the pros and cons of the option,
- Choice of payment and savings services according to business needs, use of technology-based services,
- Use of separate accounts for business and personal transactions.
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{{TAG_OPEN_span_31}Business Management & Financial Planning
- Information on registration, permission, tax, exemption, employee appointment, cancellation and other legal procedures as per the nature of the business,
- Income, expenses, assets, liabilities and investment accounts of the business, financial statements, cash flows, information about the use of technology for accounting,
- Short-term planning, sources of cash coming and going, budgeting, long-term business expansion plans, short-term and long-term loans, partnerships, capital planning.
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Risk diversification and insurance
- Risk management, retirement planning and personal insurance related to entrepreneurs and employees,
- Financial risks to the business, risk of damage to business property, diversification and use of non-life insurance.
Financial Environment
- Economic, political, social, technological, competition, regulations, and other external influences on the market, income, and expenses of the business, as well as the improvement of business model, innovation,
- Professional Financial Customer Rights, Grievance Bodies, and Protection Provisions,
{{TAG_OPEN_li_35} A source of authoritative and unbiased information and advice for business and financial services selection, continuous capacity building.
Capable entrepreneurs are the basis for sustainable job creation, innovation and income expansion.
