Credit Management Knowledge and Entrepreneurial Success among Youth-Led Micro Enterprises in Guangzhou, China

Abstract

Credit management knowledge is a critical factor in the entrepreneurial success of businesses. Understanding how to effectively manage credit transactions, assess creditworthiness, and maintain positive relationships with creditors is essential for financial stability and growth. Entrepreneurs with strong credit management knowledge are better equipped to secure financing, build credibility, optimize cash flow, and make informed financial decisions. By implementing sound credit management practices, businesses can mitigate the risk of bad debts, enhance their reputation, and seize opportunities for expansion and diversification. Ultimately, credit management knowledge serves as a foundation for entrepreneurial success by ensuring financial stability, facilitating access to resources, and enabling strategic decision-making. The study used the descriptive research design. The target population was 220 Micro Enterprises in Guangzhou, China. The study did sampling of 146 respondents that were chosen from the target population of 220 Micro Enterprises in Guangzhou, China. Data collection was done by the use of questionnaires. The study concluded that access to financing is a key determinant of entrepreneurial success. By equipping young entrepreneurs with credit management knowledge, they can develop strong credit profiles, demonstrate their creditworthiness, and increase their chances of securing loans or credit lines from financial institutions. Efficient cash flow management is vital for the smooth operation of micro enterprises. The study recommended that government agencies, industry associations, and educational institutions can collaborate to develop training programs and workshops specifically tailored to young entrepreneurs. Policymakers should consider implementing initiatives that incentivize financial institutions to provide accessible financing options to micro enterprises. Integrating credit management education into school curricula, vocational training programs, and entrepreneurship initiatives can equip young individuals with essential financial skills from an early stage.