Intuit has released the results of its 2014 Canadian Financial Literacy Quiz, and the results are, well, damning. Surveying almost 700 Small business owners across Canada (see methodology below), Intuit found that almost four in 10 lacked basic financial management knowledge, with 39% of respondents receiving a failing grade. That’s actually 5% better than the results of 2012’s survey, but that can be considered at best silver lining.
The results from Intuit’s survey also show that Canadian entrepreneurs are conflicted regarding their level of financial savvy. Nine out of ten entrepreneurs surveyed believed they possessed and average or advanced understanding of financial mangement. However, 35% of those same respondents stated that they need to pay closer attention to their financial management, with 47% believing that even basic financial training would help their businesses be more profitable.
Regionally, Quebec and Alberta did the worst, representing 61% and 40% of the failing scores, respectively. Ontario and B.C. weren’t far behind, holding failing scores in the thirties. Atlantic Canada performed the best on the quiz, responsible for 18% of the ‘great’ scores.
Those interested in seeing how their financial savvy stacks up against Canadian entrepreneurs can take the test at: https://knowyourworth.ca/.
METHODOLOGY
· From November 20th to November 28th, 2014, Vision Critical surveyed 683 Canadian small business owners, comprised of a balanced sample of 500 small business owners.
· The balanced sample was comprised of 500 small business owners and oversamples in BC, AB, ON, and QC. The margin of error for the total sample is +/-3.7%, nineteen times out of twenty.
· The sample was balanced according to census data on the number of employees and region within Canada. The data was weighted according to the same criteria.
· For the purpose of the survey, a “small business” was defined as a full-time business that employs up to 99 employees, including those with no employees.
· The survey re-ran 2012’s 10-question Financial Literacy Quiz that tested small business owners on their knowledge of financial management principles. Each question was multiple-choice with one correct answer. respondents’ performance on the quiz was determined how many total “correct” responses were given.