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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM67854
Volume:
10 |
10 |
Oct 2026
Pages:
1-15
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Bachelor of Business Administration
KL University
Bachelor of Business Administration
KL University
Financial management is crucial for the survival and growth of startups, as they have limited resources and need to manage them effectively. The present study investigates the role of budgeting, cash flow management, working capital management and its effect on survival of start-ups in India. The primary data were gathered from 92 respondents through a structured questionnaire comprising of demographic questions, statements and questions on financial priorities on the Likert scale. Descriptive statistics, chi-square tests, one-way ANOVA and regression analysis were used for the data analysis. The results show that budgeting, cash flow management and working capital management were found to be important to the survival of the start-ups with an average rating of 3.94 to 4.11 on a five point scale. Regression analysis revealed that budgeting and cash flow management demonstrated significant relationship with perceived startup survival and working capital management had significant relationship when tested individually but it did not have a strong relationship when tested with the other financial practices. The study also revealed that there were differences between the students and the non-students with respect to their financial priorities and no significant differences were identified between the various major demographic groups with respect to their overall perceptions. In conclusion, the study underscores the significance of a budget-based approach, proper cash flow management, and appropriate working capital management for a start-up to survive in India. The results offer valuable information to startup founders and aspiring entrepreneurs for enhancing their financial management strategies.
KEYWORDS
This study tested how budgeting, cash flow management and working capital management practices contribute to a start-up's perceived chances of survival in India using 92 Indian respondents. Analysis using Excel's chi-square, ANOVA and regression tests showed that the three practices explain a significant portion of variation in perceived survival (R² = .223). Budgeting and cash flow both have significant impacts individually, with budgeting having a stronger effect, while working capital is significant on its own and marginal when controlling for the other two. Financial priorities do not vary by gender, but construct scores do not differ significantly by education, occupation, income or age, while students and non-students differ both in their most important practice and biggest challenge. This supports the view that disciplined budgeting and control over cash are fundamental to a start-up's survival chances, with working capital discipline providing a significant addition. This study's findings must be treated as tentative due to the reliance on young respondents, and further analysis of actual survival outcomes should be undertaken.
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Publication Date
10/12/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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