STARTUP ENTREPRENEURS AND FINANCIAL COMMUNICATION WITH BUSINESS STAKEHOLDERS

Abstract

This academic article aimed to propose effective financial communication strategies for stakeholders in startup businesses that required fundraising or relied on external funding sources. The study was based on a review of relevant literature, concepts, theories, and research related to financial communication, data preparation, communication planning, crisis communication management, and strategic communication. The findings suggested that entrepreneurs should be capable of communicating financial information both internally and externally. Internal communication helped build employee confidence during normal situations and fostered collaboration during crises. Meanwhile, external communication played a key role in building investor confidence and trust among related parties, directly influencing the business’s ability to raise capital. Financial communication should have clearly defined objectives, content, and scope. It should also utilize appropriate channels and be consistent, accurate, timely, and easy to understand. These practices were essential for building mutual understanding and stakeholder confidence, ultimately supporting the achievement of business goals.