Why a cash flow is crucial for social entrepreneurs

A man walks into a bank, pulls out a gun and says to the clerk, “Give me all your money. I need to set myself up in new social enterprise. I need initial investment until my cash flow is established.” 

The manager turns to the clerk and says, “You’d better do what he says, I think he means business.” 

How right our robber is, any social enterprise, no matter the size or how long it has been established, needs to have a robust cash flow. Like any other business, lack of cash is one of the biggest reasons for small business failure. 

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