ACCA (the Association of Chartered Certified Accountants) addresses the financial literacy skills gap in South Africa with a new guide for anyone starting their own business, new to financial management or simply seeking to improve their knowledge.
Whatever the force that drives South African entrepreneurs to get their ideas off the ground, the fact remains that there are many obstacles that they will have to overcome. Financial management is at the heart of running a successful business and remains a major challenge for many business owners. According to Fin24, 63% of businesses operating for less than 3 years fail in South Africa. In many instances, entrepreneurs are not equipped with the skills and knowledge needed to make informed and effective decisions about their financial business model.
ACCA have addressed the issue through a brand new guide, ‘Financial management and business success – a guide for entrepreneurs’, designed to help small businesses understand the importance of financial literacy and guide them through the basic elements. Understanding financial information is vital for offsetting this risk as it reveals the early warning signs of impending problems.
“Building an entrepreneurship culture in South African is vital in the fight against unemployment; this guide is a game changer and can be used to support entrepreneurs to become financial savvy business owners.” Nomsa Nkomo, Policy Manager, ACCA South Africa
The guide stresses the importance of business planning at every stage of business life, helping to assess and identify opportunities directly, and avoid mistakes through applying correct financial knowledge.
Featuring quotes, case studies and statistics that support skilled financial management, the ACCA guide demonstrates how to make certain individuals have the financial capabilities needed to ensure their organisation achieves its full potential.
Rosana Mirkovic, ACCA’s Head of SME Policy said, “Having the right financial capabilities remains vital throughout the life of a business, whether you are just starting out, have an established business or are looking towards a final exit from a firm. Businesses are changing and innovating more rapidly than ever and the financial management needs of organisations must continue to evolve alongside their developments. Recognising the right financial management capabilities is, therefore, imperative to their success.”
To view the full report, please visit here.