Issue

Vol. 4 No. 1 (2025): Startupreneur Business Digital (SABDA)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

The Implementation of Effective Financial Management to Increase the Profitability of Startups

https://doi.org/10.33050/sabda.v4i1.714
Alexander Williams
Queensland University
Yehezkeil Hasudungan
PT. Health Today Indonesia
Nur Azizah
University of Raharja
https://orcid.org/0000-0002-5333-5520

Corresponding Author(s) : Yehezkeil Hasudungan

yehezkeil.hasudungan@healthtoday.id

Startupreneur Business Digital (SABDA Journal), Vol. 4 No. 1 (2025): Startupreneur Business Digital (SABDA)

Abstract

This research aims to examine the implementation of effective financial management practices to improve the profitability of startups in Indonesia. The digital startup sector in Indonesia has been growing rapidly, and as these businesses scale, managing financial resources effectively becomes increasingly important for long term success and sustainability. By identifying and analyzing financial management practices that have the most significant impact on enhancing the profitability of startups. A quantitative approach is adopted, utilizing case studies from a selection of emerging startups across various industries in Indonesia. Data were collected through surveys and in depth interviews with startup owners and financial managers, focusing on key aspects such as financial planning, cash flow management, budgeting, and investment strategies. The results indicate that startups with well structured financial planning and efficient cash flow man- agement are significantly more profitable. Additionally, the adoption of effective investment strategies and robust risk management practices has been shown to help startups mitigate financial uncertainty, avoid losses, and improve overall business stability. Applying sound financial management practices is vital for the growth and profitability of startups. Based on these findings, the study recommends that startups prioritize strategic financial planning (budgeting), cash flow optimization (organizing and measuring), and proactive risk management (controlling) to enhance financial resilience and maintain a competitive advan- tage in the market. This is an open access article under the CC BY 4.0 license.

Keywords

Financial Technology Management Startup Business Growth Startup Business Digital Business
Williams, A., Hasudungan, Y., & Azizah, N. (2025). The Implementation of Effective Financial Management to Increase the Profitability of Startups. Startupreneur Business Digital (SABDA Journal), 4(1), 47–54. https://doi.org/10.33050/sabda.v4i1.714
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
References
  1. Bhimani, A. (2022). Financial Management for Technology Start-Ups: How to Power Growth, Track Performance and Drive Innovation. Kogan Page Publishers.
  2. Battisti, E., Alfiero, S., Quaglia, R., & Yahiaoui, D. (2022). Financial performance and global start-ups: the impact of knowledge management practices. Journal of International Management, 28(4), 100938.
  3. Singh, K., & Sharma, A. (2024). Does financing startups impact the profitability of microfinancing institutions?. International Journal of Social Economics.
  4. Hannulabacka, J. (2024). Adoption of Financial Management Control Systems in Finnish Startups–A case study of five SaaS companies.
  5. Rahardja, U., Aini, Q., Santoso, N. P. L., Hardini, M., & Edliyanti, A. (2021). Financial management system integrated by web-based payment cash link solution to invent smart reconciliation. In International conference on industrial engineering and operations management (pp. 4733-4743).
  6. Hardini, M. G., Khaizure, T., & Godwin, G. (2024). Exploring the Effectiveness of E-Learning in Fostering Innovation and Creative Entrepreneurship in Higher Education. Startupreneur Business Digital (SABDA Journal), 3(1), 34-42.
  7. Khan, U. U., Ali, Y., Garai-Fodor, M., & Csiszárik-Kocsir, Á. (2023). Application of Project Management Techniques for Timeline and Budgeting Estimates of Startups. Sustainability, 15(21), 15526.
  8. Drzewiecki, J., & Olek, K. (2024). Impact of management toolbox on startups’ strategy and business models–research results. Procedia Computer Science, 246, 5565-5574.
  9. Farahani, M. S., & Esfahani, A. (2022). Opportunities and challenges of applying artificial intelligence in the financial sectors and startups during the coronavirus outbreak. International Journal of Innovation in Management, Economics and Social Sciences, 2(4), 33-55.
  10. Sakas, D. P., Reklitis, D. P., Giannakopoulos, N. T., & Trivellas, P. (2023). The influence of websites user engagement on the development of digital competitive advantage and digital brand name in logistics startups. European Research on Management and Business Economics, 29(2), 100221.
  11. Groenewald, E., Rabillas, A., Uy, F., Kilag, O. K., Bugtai, G., & Batilaran, J. (2024). Enhancing Financial Management Practices in Public Schools: A Systematic Literature Review in Southeast Asia. International Multidisciplinary Journal of Research for Innovation, Sustainability, and Excellence (IMJRISE), 1(2), 207-212.
  12. Yahyoyevna, O. F., & Alexandrovich, A. A. (2024). THE ROLE OF FINANCIAL MANAGEMENT IN IMPROVING THE FINANCIAL CONDITION OF ENTERPRISES. JOURNAL OF EDUCATION, ETHICS AND VALUE, 3(1), 44-47.
  13. Prayuda, R. Z., & Purwanto, A. (2024). The Role of Locus of Control, Financial Knowledge and Income on Financial Management Behavior: PLS-SEM Analysis. PROFESOR: Professional Education Studies and Operations Research, 1(02), 1-5.
  14. Goyal, S. B., Harahap, E. P., & Santoso, N. A. (2022). Analysis of financial technology implementation on the quality of banking services in indonesia: Swot analysis. IAIC Transactions on Sustainable Digital Innovation (ITSDI), 4(1), 77-82.
  15. Budiasih, Y. (2024). The Influence of Digital Technology on Financial Management. Accounting Studies and Tax Journal (COUNT), 1(1), 92-100.
  16. Hidayat, M., Defitri, S. Y., & Hilman, H. (2024). The Impact of Artificial Intelligence (AI) on Financial Management. Management Studies and Business Journal (PRODUCTIVITY), 1(1), 123-129.
  17. Rachmad, Y. E., Bakri, A. A., Irdiana, S., Waromi, J., & Sinlae, A. A. J. (2024). Analysis of The Influence of Financial Information Systems, Internal Control Systems, and Information Technology on Quality of Financial Reports. Jurnal Informasi Dan Teknologi, 266-271.
  18. Maheshwari, S. N., Maheshwari, S. K., & Maheshwari, S. K. (2024). Management Accounting and Financial Control. Sultan Chand & Sons.
  19. Nwalado, S. H., Onyemah, L. N., & Oru, P. O. (2024). ASSESSMENT OF FINANCIAL MANAGEMENT SKILLS REQUIRED OF ACCOUNTING STUDENTS IN TERTIARY INSTITUTIONS IN DELTA STATE FOR EFFECTIVE OPERATION OF SMALL SCALE BUSINESS. AFRICAN EDUCATION INDICES, 13(1).
  20. Akour, I., Alzyoud, M., Alquqa, E., Tariq, E., Alzboun, N., Al-Hawary, S., & Alshurideh, M. (2024). Artificial intelligence and financial decisions: Empirical evidence from developing economies. International Journal of Data and Network Science, 8(1), 101-108.
  21. Lutfiani, N., Wijono, S., Rahardja, U., Iriani, A., & Nabila, E. A. (2022, November). Artificial intelligence based on recommendation system for startup matchmaking platform. In 2022 IEEE Creative Communication and Innovative Technology (ICCIT) (pp. 1-5). IEEE.
  22. Miswanto, M., Tarigan, S., Wardhani, S., Khuan, H., Rahmadyanti, E., Jumintono, J., ... & Machmud, M. (2024). Investigating the influence of financial literacy and supply chain management on the financial performance and sustainability of SMEs. Uncertain Supply Chain Management, 12(1), 407-416.
  23. Triansyah, F. A., Nofriansyah, N., & Khasan, T. (2024). The Effect of Financial Inclusion on Financial Literacy. Journal of Multidisciplinary Global, 1(2), 179-189.
  24. Bouchetara, M., Zerouti, M., & Zouambi, A. R. (2024). Leveraging artificial intelligence (AI) in public sector financial risk management: Innovations, challenges, and future directions. EDPACS, 69(9), 124-144.
  25. Sutrismi, S., Rachman, R., Rusman, H., Khaddafi, M., & RoziqiFath, Z. F. M. (2024). Financial ratio analysis of financial distress in Indonesia stock exchange-listed customer goods corporations. Jurnal Ekonomi, 13(01), 1019-1024.
  26. Del Sarto, N., Gai, L., & Ielasi, F. (2024). Financial innovation: the impact of blockchain technologies on financial intermediaries. Journal of Financial Management, Markets and Institutions, 12(01), 2350005.
  27. Harsono, I., & Suprapti, I. A. P. (2024). The role of fintech in transforming traditional financial services. Accounting Studies and Tax Journal (COUNT), 1(1), 81-91.
  28. Sarioguz, O., & Miser, E. (2024). Integrating AI in financial risk management: Evaluating the effects of machine learning algorithms on predictive accuracy and regulatory compliance.
  29. Wenjing, Y., Wisedsind, N., & Ruanggoon, J. (2024). Improvement of Financial Management: A Case of A Chinese Telecommunication Enterprise. Science, Technology, and Social Sciences Procedia, 2024(5), CiM08-CiM08.
  30. Sehnem, S., Lara, A. C., Benetti, K., Schneider, K., Marcon, M. L., & da Silva, T. H. H. (2024). Improving startups through excellence initiatives: addressing circular economy and innovation. Environment, Development and Sustainability, 26(6), 15237-15283.
Read More
Author biographies is not available.
Download this PDF file
PDF
Statistic
Read Counter : 597 Download : 354

Downloads

Download data is not yet available.