Financial education as a management tool in small businesses

Abstract

Financial education has proven to be a strategic ally for the efficient management of micro and small businesses, especially in unstable economic contexts and highly competitive markets. This article aims to analyze the importance of financial education as a management tool in these enterprises, considering the main challenges faced, such as the lack of cash flow control, confusion between personal and business finances, lack of planning, and difficulty accessing reliable information. The research was conducted through a bibliographic review based on updated and relevant academic sources. It was observed that the lack of financial knowledge among entrepreneurs directly compromises business sustainability, potentially leading to early failure and resource wastage. Conversely, adopting financial education practices promotes better administrative organization, strategic planning, and the ability to make informed decisions, enabling a critical view of resource usage. Moreover, the use of tools such as cash flow management, financial indicators analysis, budgeting, and cost control proves essential for business strengthening and growth. The integration of financial education and business management also allows entrepreneurs to identify investment opportunities, minimize risks, and increase market competitiveness. It is concluded that financial education is more than an auxiliary resource; it is a determining factor for the success and longevity of micro and small businesses. Therefore, it is essential that entrepreneurs are encouraged to pursue continuous training in this area through courses, consulting, and specialized materials. Such training contributes not only to improving the financial health of businesses but also to local and regional economic development