In “Financial Literacy and the Success of Small Businesses: An Observation from a Small Business Development Center,” published by Numeracy, Florida SBDC at USF Regional Director, Eileen Rodriguez, and Pearl Dahman, studied 14 small businesses in regards to their financial literacy.
Businesses were surveyed to determine their level of financial understanding and their use of financial statements in making management decisions.
The study found a strong correlation between the small businesses’ financial strength and the business owners’ habits of mind with regard to their financial statements: 13 of those received monthly financial reports and seven were having financial difficulties. Of those seven having financial difficulties, six admittedly did not review their financial reports.
Businesses studied were in the manufacturing, distribution and service industries with a range of revenues, employees and years in business.
Visit Numeracy to view the full findings.