How financially aware are you as a business owner?

Our finance partner shows the latest report from Start My Buisness..

The Commercial Reporter highlights the need for business finance options to be illuminated to small business owners, particular considering the cost-of-living crisis we are currently amidst.

Business launchpad platform Start My Business commissioned the polling of 500 CEOs and decision-makers at UK SMEs, via Censuswide, to observe the financial understanding and awareness of business owners in a post covid world.

Younger business owners came out the worst when it came to their financial awareness. 57% of business owners under the age of 35 were clueless when it came to acquiring external business finance or funding. Admitting they were 'out the loop' and not knowing where to turn to source the products needed for their businesses.

More staggeringly 61% of all owners surveyed do not know how to access finance options beyond traditional high street banks. This figure is significantly higher amongst larger companies with over 50 employees, with two-thirds of owners feeling unsure about how to access finance options beyond the high street lenders.

However, the surveyed business owners were keen to educate themselves on a better understanding of financial processes. 49% said that they want to learn how to manage their cash flow more effectively, whilst 38% said tracking the financial health of their business was the area they wanted to upskill most in the immediate future.

The research also revealed that bank account apps are relyed upon by 55% of the business owners as the most popular service to track the financial position of their business. In unison with banking apps, half of the CEOs depend on accounting software, whilst 37% incorporate Excel spreadsheets into their financial tracking process.

Shoaib Aslam, founder and CEO of Start My Business, commented:

“Understanding your options when it comes to business finance is vital to any successful start-up or an established business, and it is disappointing that there is such a lack of guidance and support to help business owners realise their options.

With small business in particular, so important to the economy, the government should be front and centre in highlighting business finance options, especially amidst the cost-of-living crisis. Part of the issue for business owners is that all of the tools they need are spread between banking apps, accounting software, and a whole host of other services required for a successful business, adding to the complication of the business finance process."

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