94 percent of the entrepreneurs surveyed said they could improve their financial skills
According to the latest study by Intuit nearly all of India’s small businesses believe they could have been more successful with better financial management.
In the study, titled “Financial Management – An Essential Tool for a Healthy Business,” 94 percent of the entrepreneurs surveyed said they could improve their financial skills.
Given that India has the second largest number of small businesses in the world – a total of 48 million – the whitepaper sheds light on the important role that financial management plays in the life cycle of a small business. The start of the new financial year is an appropriate time for small businesses in the country to take stock of their business’s financial health.
The whitepaper, prepared for Intuit India by the global research firm International Data Corporation, reveals essential data on financial management trends and practices amongst small business in India. Among the findings:
78 percent of small businesses are prioritizing on improving their financial management skills in the new year.
Nearly 75 percent are prioritizing investment in financial management for better visibility and control of their business.
Commenting on the whitepaper findings, Nikhil Arora, Vice President and Managing Director, Intuit India, said, “Small businesses are at the heart of economic growth in India and are critical to boosting the country’s economic growth and job creation. The challenges they face are quite similar across regions. They face these challenges because of the inherent lack of focus on and alignment with financial management and processes.”
“The whitepaper found that 33 percent of small business owners took over three years to realize that business sustainability relies on efficient financial planning. It is critical that small businesses establish the financial management processes in the first year, and fine tune by the time they hit the three-year mark. If executed well, financial management will evolve from a mere ‘support function’ to a ‘strategic advantage.’”