EXPLORATION OF FINANCIAL MANAGEMENT PRACTICES IN TECHNOLOGY STARTUPS WITH A FOCUS ON CAPITAL AND RISK MANAGEMENT

Leni  Triana; Yuliah Yuliah

doi:10.53067/ije3.v4i3.312

Authors

Leni Triana Universitas Bina Bangsa
Yuliah Yuliah Universitas Bina Bangsa

DOI:

https://doi.org/10.53067/ije3.v4i3.312

Keywords:

Financial Management, Technology Startup, Venture Capital, Risk Management, Working Capital

Abstract

This research aims to explore financial management practices in technology startups in Indonesia, with a focus on capital and risk management. Qualitative methods were used through in-depth interviews, observation and document analysis. The research results show that funding from venture capital is the main source for startups, which is used to support operations, product development and marketing. Working capital management is focused on cash flow efficiency to maintain financial stability amidst income fluctuations.

Risk management is a significant challenge for startups, especially in the face of market volatility, intense competition and rapid technological change. Risk mitigation strategies include product diversification and assistance from venture capital. This research also found that the risk management systems in many Indonesian startups are still less integrated compared to companies in developed countries. These findings fill a gap in previous research and provide a perspective on financial management in developing country startup ecosystems. This research concludes that venture capital and effective risk mitigation strategies are key elements for the sustainability of technology startups. Further research is needed to understand the role of financial technology in startup financial management

Downloads

Download data is not yet available.

References

Brigham, E. F., & Houston, J. F. (2018). Dasar-Dasar Manajemen Keuangan (Edisi 14). Salemba Empat

Chen, J. (2019). Series A Financing. Investopedia. Retrieved from https://www.investopedia.com/terms/s/seriesa.asp

CRMS Indonesia. (2023). Strategi Tata Kelola Organisasi dan Risiko untuk Startup. Retrieved from https://crmsindonesia.org/publications/strategi-tata-kelola-organisasi-dan-risiko-untuk-startup/

Gompers, P., & Lerner, J. (2018). The Venture Capital Revolution. Journal of Economic Perspectives, 15(2), 145-168.

Erdogan, A. I., & Koohborfardhaghighi, S. (2019). Financial Risk Management in Startups: A Systematic Review. Journal of Risk and Financial Management, 12(3), 123. https://doi.org/10.3390/jrfm12030123

Google, Temasek, & Bain. (2023). e-Conomy SEA 2023: Indonesia Digital Economy Report. Retrieved from https://www.googlesearch.com/economysea

Hadi, S. R., & Nugroho, T. S. (2021). Pengelolaan Keuangan dan Arus Kas dalam Startup Teknologi di Indonesia. Jurnal Ekonomi dan Manajemen, 30(4), 412-430.

Hidayat, A., & Pranoto, M. (2022). Pengaruh Adopsi Fintech terhadap Pengelolaan Arus Kas Startup di Indonesia. Jurnal Manajemen Keuangan, 10(2), 150-165. https://doi.org/10.21009/jmk.2022.v10i2.05

Kaplan, R. S., & Mikes, A. (2012). Managing Risks: A New Framework. Harvard Business Review, 90(6), 48-60. https://doi.org/10.1016/hbr.2012.06.005

Kasmir. (2018). Analisis Laporan Keuangan. Raja Grafindo Persada.

Rahmawati, R., Mustika, A., & Santosa, I. (2020). Peran Fintech dalam Meningkatkan Akses Modal bagi UMKM di Indonesia. Jurnal Ekonomi dan Bisnis, 15(1), 45-60. https://doi.org/10.20473/jeb.v15i1.2020.45-60

Sitinjak, R. G. K., Mardhiyyati, H., & Eka, P. D. (2024). Strategi Manajemen Risiko Keuangan Pada Perusahaan Startup Indonesia: Studi Kasus Dari Artikel Dan Laporan Industri. Prosiding Seminar Nasional Manajemen, 4(1), 667-671. https://doi.org/10.11594/psnm.v4i1.2024

Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015). Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), 533-544. https://doi.org/10.1007/s10488-013-0528-y

Wijaya, M., Utama, M., & Yulia, R. (2023). Modal Ventura sebagai Katalis Pertumbuhan Startup di Indonesia: Studi Kasus dan Implikasi Kebijakan. Jurnal Kebijakan Ekonomi, 8(1), 22-38. https://doi.org/10.25170/jke.v8i1.2023

Yin, R. K. (2018). Case Study Research and Applications: Design and Methods (6th ed.). SAGE Publications