Financial Literacy Report
SFA survey reveals less than half of Ireland’s small business owners believe they have good or expert knowledge of financial literacy
• 46% of small business owners perceive themselves to have good or expert knowledge of financial literacy
• 51% of small business owners do not read their monthly accounts
The Small Firms Association (SFA) today launched the ‘Financial literacy amongst Irish micro, small and medium-sized businesses’ report, in collaboration with TU Dublin, Microfinance Ireland, SBCI and Skillnet Ireland. The survey was conducted by iReach.
Commenting, Sven Spollen-Behrens, SFA Director, said: “Our survey results highlight concern about the level of financial literacy amongst Ireland’s small business leaders. Unlike larger companies who have access to experts, the success of small firms depends on the financial knowledge and skills of the owner.”
The main findings of the SFA survey include the following:
• 81% of respondents said financial literacy was very or extremely important, but only 46% said they had good or expert knowledge of financial literacy. Respondents thought that only 19% of other Irish business owners had good knowledge;
• 51% of business owners do not read their monthly accounts on a monthly basis;
• About a quarter of respondents do not produce important financial reports like debtor/creditor lists and sales and expenditure reports, while 16% of respondents do not use monthly reports;
• 34% said that they use financial statements to make business decisions and 42% said that they do not understand financial statements; and
• 58% said they do not utilise financial statements as they believe that is the job of their accountant.