Budgeting is crucial for entrepreneurs for several reasons:
Financial Control: A budget provides a framework for monitoring income and expenses, helping entrepreneurs maintain control over their finances. Resource Allocation: It helps in efficiently allocating resources to various business operations, ensuring that funds are available for critical activities. Risk Management: By forecasting future financial needs, a budget helps in identifying potential risks and preparing contingency plans. Performance Measurement: It allows entrepreneurs to measure their financial performance against set goals and make necessary adjustments.