"Business growth is dependent on solvency, credibility, ability to raise funds, availability of resources and liquidity". Elaborate briefly on all these aspects of financial management.

Business growth in the context of new and small enterprises significantly depends on effective financial management. The core financial pillars supporting such growth include solvency, credibility, ability to raise funds, availability of resources, and liquidity. Each of these elements contributes to the financial stability and expansion potential of a business.

Solvency refers to a business’s ability to meet its long-term financial obligations. For a new or small enterprise, maintaining solvency means having a strong capital structure and manageable levels of debt relative to assets. Solvency ensures that the business can sustain operations during periods of low revenue or economic downturns. Start-ups and small enterprises often face solvency challenges due to insufficient equity or over-reliance on borrowed funds. Thus, managers must monitor the debt-to-equity ratio and maintain a balance between owned ____ _______ ____ ______ ___ _____ _______ _______ __________ ______.
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