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Financial Management Risk Analysis for Start-ups

Qiusheng Liao, Chongyan Zhang*

Abstract


Since the launch of Chinas mass entrepreneurship and innovation strategy in 2014, a new wave of grassroots entrepreneurship has been stimulated, and has given rise to the trend of innovation for all and innovation for all.The trend of innovation for all
and innovation for all has been spawned.However, the current success rate of entrepreneurship is still low, and startups face a variety of
problems in their operations.According to statistics, the average lifespan of Chinese startups is about 2-3 years, showing high risks.Neglect
of financial management and entrepreneurs lack of knowledge of financial management are one of the main reasons, which leads to the
failure of financial risk problems to be solved in a timely manner, which in turn increases the investment risk of startups, leading to the
break of the capital chain and business failure.The aim of the article is to analyze the challenges of financial management in startups and
to propose recommendations and improvements aimed at providing guidance to entrepreneurs to reduce mistakes and increase the success
rate of entrepreneurship.

Keywords


Start-ups; Financial management risk; Entrepreneurial success

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References


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