Intuit Finds Small Business Owners Understand the Importance of Financial Literacy, but Want More Help and Tools
MISSISSAUGA, ON, Jan. 16, 2013 /CNW/ - When it comes to finance, most Canadian small businesses know they need help. Those are among the results of a new survey and financial literacy quiz conducted on behalf of Intuit Canada, which reveals that 83 per cent of Canadian small businesses face a serious financial literacy skills gap.
To learn more about the financial literacy levels of Canadian small businesses, Intuit Canada commissioned Angus Reid Public Opinion to conduct a 10-question quiz among entrepreneurs. Among the questions: What is the role of the balance sheet? How can short-term cash-flow be improved?
Only a few scored highly:
- Two per cent achieved a score of great: (9 - 10 correct).
- 16 per cent achieved a score of good: (7 - 8).
- 39 per cent achieved a score of basic: (5 - 6).
- 44 per cent achieved a score of below basic: (0 - 4).
"A large number of small business owners (83%) scored either basic or below basic on the quiz. At the same time, a majority (50%) also understand that financial management is important," said Jeff Cates, managing director of Intuit Canada. "This reveals both a serious skills gap - and a lack of access to the tools and resources that can help."
"We believe that the single most important thing we can do to help more small businesses succeed is to increase awareness about financial literacy, and make more tools and resources available," said Cates.
Root Causes
The failure rate for small businesses in Canada is alarmingly high, according to Statistics Canada. While 85 per cent make it through their first year of business, only 51 per cent survive through year five. Starting a business on sound financial footing is essential to reversing this trend.
Read more from Canada Newswire