Nearly a quarter of SME owners surveyed said they don't know what costs they need to manage
There are a number of challenges that affect Canadian small business owners, especially as the economy pulls itself out of the recession. But one challenge may have nothing to do with the state of the economy - a significant amount of small business owners are lacking basic financial management literacy, said a recent study.
According to a survey of Canadian small business owners by Sage North America, nearly a quarter of respondents could not identify the key costs they needed to manage for the success of their business.
"While the survey revealed a reasonable level of financial literacy among small businesses today, it's obvious that there is room for improvement both in the financial knowledge base that exists among small businesses today in Canada and how that knowledge is being implemented to help businesses succeed and grow," said Hamish Marshall, research director, public affairs, for Angus Reid Public Opinion.
Small business owners without a secure sense of what finances they need to manage may want to consider hiring an accountant or consultant, as strong financial management is a prerequisite to small business growth.
