At the start of this course on financial management we would like to embed financial management in the context of all kinds of management needed to run a business. As the figure below shows, a modern business works holistic and covers several areas: financial management, social impact management, process & resources management and healthy business management. A modern business strives to be sustainable and therefore values both societal and financial value. In order to maximize these values, the figure shows that not only financial and societal performance need to be managed, their results also depends on the process and resources performance (both material and human) and sustainability criteria.
To follow up on these values, we need a dashboard to monitor relevant data. Although this course shall initiate you into the world of financial data and instruments, other indicators are equally important. These four domains of management are not only important for social entrepreneurs, all sustainable entrepreneurs should take them seriously.
You can have a look at the 4 management types in the next topic