Managing Capital Resources and Their Impact on Business Operations

Ahmed Bin Jumaan Bin Mohammed Al-Hilali Al-Zahrani presented at the Gate Academy celebration:

Title: Managing Capital Resources and Their Impact on Business Operations

 

Introduction

The phenomenon of managing capital resources is prominent in today's world and has emerged in various fields. Despite the concerns surrounding international capital flows, developing countries have continuously sought to attract them. They have pursued economic restructuring and implemented comprehensive economic reform policies to achieve stability in areas such as public budgeting and balance of payments. This is all aimed at integrating into the global economy to secure their share of international investments within the framework of global trade. Many developing countries have also liberalized their capital accounts as part of economic reforms towards a market economy. The main justification for liberalizing financial flows with the outside world and integrating into global trade dynamics lies in their positive role in economic growth by achieving various benefits such as efficient allocation of savings, redirecting resources towards more productive uses, facilitating portfolio diversification and risk sharing, reducing transaction costs, improving returns, specializing in financial services, providing innovation incentives, and enhancing productivity. Therefore, international capital flows, if well utilized and regulated, can play a significant role in developing the economy and trade of recipient countries.

Within this context, businesses are turning to capitalize on capital resources at the managerial level by activating what is termed "Capital Resource Management" within these entities. This, in turn, will contribute to increasing the profits of these entities and avoiding the risks of loss.

 

Research Problem

Capital resource management is one of the subjects that should remain a research topic in the current era for executives, supervisors, and managers in all organizations and in developing management in work, for several reasons. The main research question for this study can be formulated as follows:

(What is the impact of capital resource management on business operations?)

 

To answer this question, several sub-questions can be formulated as follows:

- What is capital resource management?

- How did financial management emerge?

- What is the definition of financial management?

- What are the main objectives of financial management?

- What are the most prominent functions of financial management?

- What is an entity and what are its main characteristics?

 

Research Significance

The scientific significance of this study lies in its attempt to understand all the theoretical mechanisms and approaches that address the subject of capital resource management, its impact on business operations and performance. Capital resource management is one of the most important and modern topics that must be addressed, especially in the academic field, as a fundamental requirement in the managerial process.

The practical significance of the study lies in its potential to open up opportunities for administrators and those interested in developing managerial work. This study contributes to their awareness of the nature of the concept of capital resource management, its various dimensions, and the nature of its impacts and importance, which will significantly contribute to improving the performance of entities.