THE IMPORTANCE OF FINANCIAL HEALTH IN MICRO-ENTERPRISES

Abstract

This article analyzes the importance of financial health in micro-enterprises, focusing on the influence of financial management on the survival, organization, and growth of these businesses. The study starts from the recognition that micro and small enterprises play a relevant role in the Brazilian economy, especially in generating employment and income, but face difficulties related to the lack of financial planning and control. The objective of the research was to investigate how financial management contributes to the maintenance of micro-enterprises, identifying challenges and proposing improvements. Methodologically, descriptive research, with a qualitative approach, was adopted through a case study carried out in a beverage distributor located in Ilhéus, Bahia. Data collection was based on the analysis of internal documents, especially records of revenues, expenses, and cash control, from February 25 to April 25, 2026. The results showed growth in sales, profit generation, and financial balance, but also revealed a high participation of the cost of goods sold in the composition of expenses, reducing the profit margin. It is concluded that financial management is indispensable for strengthening sustainability, supporting decision-making, and increasing the competitiveness of micro-enterprises.