Many SMMEs lack strong financial skills and struggle with financial literacy. With this in mind, it is with great excitement to announce that I AM AN ENTREPRENEUR will be collaborating with SAICA (The South African Institute of Chartered Accountants) Enterprise Development, to enhance the Financial Excellence element of the SMMEs in our 2021 Enterprise and Supplier Development (ESD) programme.
A lack of skills exists in the start-up and early stages of business which often prevents the business owner’s ability to; build a company that is better managed, maintain up to date financial records, understand how to manage their cash flow, articulate their funding need, and finally develop the trading history and track record necessary to secure funding.
Qualitative research shows that many SMMEs who are eligible for funding are still unable to secure the finance they need due to their lack of finance readiness, that is, they are unable to produce the financial documentation required by funding institutions. These documents include up to date management accounts, the latest financial statements, budgets, forecasts and tax clearance certificates. The research further shows that a lack of business skills and knowledge directly relates to the SMMEs inability to unlock different forms of funding.
According to the Global Entrepreneur Monitor report, the most important non-financial support requested by entrepreneurs was identified as business planning assistance and skills training. These struggles with financial literacy that SMMEs face are the reason why I AM AN ENTREPRENEUR is launching the Financial Excellence collaboration with SAICA Enterprise Development, as a new addition to the 2021 ESD Programme.
The value of the interventions will assist SMMEs to have up-to-date and vetted management accounts, provide them with an understanding of the management accounts and assist with decision-making that is effective and relevant. Working with SAICA Enterprise Development will ensure that the overall standards of the Accounting profession will be implemented and adhered to throughout the project.
By working together, our intended impact on small business owners can only be greater. We’re looking forward to making magic together.
This article first appeared on, www.iamanentrepreneur.co.za on 10 February 2021.