The Role of Financial Innovation in Supporting Financial Management Efficiency in Technology Start-Up Companies in Indonesia

Nunung Nurhayati

doi:10.55227/ijhess.v4i4.1406

Authors

Nunung Nurhayati Faculty of Economics, Universitas Wiralodra, Indramayu, Indonesia

DOI:

https://doi.org/10.55227/ijhess.v4i4.1406

Keywords:

Financial Innovation, Financial Management, Technology Start-Ups

Abstract

This study explores the role of financial innovation in enhancing the efficiency of financial management within technology start-up companies in Indonesia. As start-ups in this sector face unique financial challenges, particularly related to funding, risk management, and scalability, financial innovation emerges as a crucial strategy for achieving sustainable growth. Using a qualitative approach based on literature review and library research, this study analyzes existing theories and empirical findings on financial innovations, such as digital payment systems, peer-to-peer lending, and blockchain technology, and their applications within start-up financial management. By examining various scholarly articles, industry reports, and case studies, the study identifies key ways that financial innovations contribute to cost reduction, risk minimization, and streamlined financial processes. The findings reveal that adopting innovative financial tools not only enables start-ups to manage resources more effectively but also fosters better investor relations and enhances competitive advantage. Moreover, financial innovations help bridge financing gaps, making it easier for start-ups to access funding and manage cash flow. This study provides practical insights for start-up founders, financial managers, and policymakers on the importance of integrating financial innovation into the strategic planning of technology start-ups to support robust and efficient financial operations. Ultimately, this research contributes to a better understanding of the evolving role of financial technology in the Indonesian start-up ecosystem, emphasizing its impact on corporate financial management efficiency.

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