Financial Tools – Financial LiteracyFinancial tools can be understood only when entrepreneurs are financially literate. By understanding the five important elements of finance, an entrepreneur can become successful, which can only be achieved through financial literacy. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Understanding the fundamentals of the financial tools that enable businesses to operate successfully helps entrepreneurs not only formulate their overall strategy and balance long-term investments with quarterly budgeting decisions, but also keep track of the nitty-gritty details like customers who haven't paid, suppliers who have overbilled, or numbers that were previously black start to slip into red. When it comes time to talk to private equity firms, banks or investors – who could potentially become stakeholders of a growing business – the ability to speak your mind (financially) will undoubtedly prove invaluable. All entrepreneurs need adequate financing to start and subsequently grow their businesses. Access to loans or lines of credit is a key factor in the expansion process for small businesses. A financially savvy entrepreneur is more likely to have full control of their business. Understanding the meaning of balance sheets and profit and loss statements provides a clear view of your company's financial health and subsequently facilitates smarter business decisions. As a small business owner you don't have to manage all the financial side of things, but acquiring a certain degree of financial acumen means you'll be able to manage some of the company's finances and, in the process, give yourself the best chance of building a business may it prosper. As stated above, tracking the results of what the company's money is spent on helps business owners make better decisions for the future. Such that any profitable venture attracts more funding while unprofitable ones are abandoned to keep the business afloat. Financial literacy also involves studying and analyzing data and results. For example, if a company pays for marketing or advertising, it should be able to track how many sales came through that channel. This way, entrepreneurs can know whether it was money well spent in case of profit or money spent wrongly in case of loss. When spending is properly thought out like this in the startup phase, it gives the business some stability and discourages gambling. Since times gone by and up until now, money has always been a big issue for startups. So, for founders who have made prudence their watchword, doing business becomes a little easier and less difficult. For every start-up business, every rupee spent by the business must be allocated towards the best option available to influence the growth of the business. Financial ignorance comes with significant costs. Business owners who fail to understand the concept of interest compounding spend more on transaction fees, accumulate larger debts, and incur higher interest rates on loans. They also end up borrowing more and saving less money. Meanwhile, the potential benefits of financial literacy are many. Financially savvy investors are more likely to diversify risk by spreading funds across different ventures. Without an understanding of the conceptsbasic financial resources, people are not well equipped to make decisions related to financial management. Financially literate people have the ability to make informed financial choices about saving, investing, borrowing and more. So, below are some reasons why financial literacy is an important aspect of entrepreneurship. Financial literacy allows entrepreneurs to take responsibility for every rupee, and maintain a strong focus on costs and simple measures of cash flow, all of which are crucial to maximizing a small business's chances of survival. Throughout their business journey, entrepreneurs are faced with complex decisions. Equipping them with financial literacy skills is therefore believed to contribute to a better understanding of financing options and the availability of financial support services. Every year thousands of entrepreneurs create and found small businesses. The real challenge these entrepreneurs face is subsequently gaining scale. All small businesses must grow profitably to be successful. The ability to expand a business profitably and sustainably requires financial literacy. In contrast, in the major emerging economies, the so-called BRICS (Brazil, Russian Federation, India, China and South Africa), on average, 28 percent of adults are financially literate. Disparities exist between these countries as well, with rates ranging from 24% in India to 42% in South Africa. Financial literacy rates differ greatly between the world's major advanced and emerging economies. On average, 55% of adults in major advanced economies – Canada, France, Germany, Italy, Japan, the United Kingdom and the United States – are financially literate (Figure 1). But even in these countries, financial literacy rates vary widely, from 37% in Italy to 68% in Canada. Financial literacy rates differ importantly when it comes to characteristics such as gender, education level, income and age. Globally, 35% of men are financially literate, compared to 30% of women. Women have weaker financial skills than men, even considering differences in age, country, education and income. There is also a gap in financial literacy when considering relative income. They are less prepared to take critical steps like saving for retirement, buying a home, or thriving after a divorce. Without access to basic information, it's difficult to be an equal partner in a relationship or effectively manage your financial details. Additionally, many victims of the gender gap in financial literacy may be ashamed of not having an education. As a result, they may be reluctant to seek help or educational resources. Studies show that, on average, women are less financially literate than men. A wide range of factors contribute to this disparity. It is a combination of awareness, knowledge, skill, attitude and behavior necessary to make a sound financial decision and ultimately achieve individual financial well-being (Organization for Economic Co-operation and Development). Another definition from the President's Advisory Council on Financial Literacy, financial literacy is the ability to use knowledge and skills to manage financial resources effectively throughout one's life (Pailella, 2016). Financial literacy as the ability to gather important information and also to distinguish between different financial options, discussfinancial issues, plan and respond competently that impact financial decision making. Economic issues related to understanding economic issues in a country or the world. Financial services linked to knowledge of the current product and service. Investing related to knowledge of investments and investment risk. Gender, age, education level, marital status, family income, financial decision making, budgeting and expenses as influencing factors in financial literacy. Therefore, a woman entrepreneur is one who starts a business and manages it independently and tactfully, taking all the risks, facing challenges with courage and with an iron will to succeed. Female entrepreneurship is an economic activity of those women who think of a business, start it, organize and combine the factors of production, manage the business, assume the risks and manage the economic uncertainty involved in running a business. 'business. By female entrepreneurship we mean the entire process of organizing production factors, finance and human resources management carried out by women. No one can define female entrepreneurship but it can be differentiated based on gender. Entrepreneurship is an economic activity undertaken by an individual or a group of individuals. Entrepreneurship can be defined as the creation of a “new combination” of existing materials and forces; that entrepreneurship proposes innovations, as opposed to inventions, and that no one is an entrepreneur forever, only when they actually carry out an innovative activity. Conceptual Framework of Women's Entrepreneurship Cash Management When looking at a cash management that has three main breakdowns that show where cash comes from and goes to: Financial activities include borrowing and repaying long-term liabilities. Investing activities include the purchase and sale of long-term fixed assets, such as property, plant and equipment. Operational activities include your day-to-day operations. Increases and decreases in accounts receivable and payables are accounted for on the cash flow statement, as are other activities that arise from operating your business and selling your products and services. The operating section is where the main cash flow should be generated. Long-term business health comes from having good net income and positive cash flow from operating activities. Budgeting Basics Budgeting is the most effective way to control your cash flow, allowing you to invest in new opportunities when the time is right. A budget is a plan for: Making sure you have enough money for your future plans. enable you to make confident financial decisions and achieve your goals ensure you can continue to fund your current commitments control your finances Banking and Financial Services Our values-based banking model invites us to not only provide expert financial products and services, but look at all the ways in where we can create wealth and well-being for our members. Financial literacy is one of the first steps on the road to economic strength and independence. We have developed a number of initiatives and continue to work with community partners to deliver programs for both individuals, businesses and organisations. The Impact of Interest Understanding the details of interest can impact your finances more than you probably think, so it's an important concept to consider gaining a better understanding of the early years of life. While you might touch on the concepts within a math course, it's important to understand several aspects, such as”,, 16(2), 87-100