Canadians entrepreneurs apparently don’t know their worth. According to a recent survey by Intuit, 27 per cent of small businesses believe they may be undercharging for their services. The “Intuit Canada Small Business Landscape Study 2014” was conducted between August 12th to 18th of 666 Canadian small business owners. It should also be known that a “small business” was defined as a full-time business that employs up to 99 employees.
The survey noted that these businesses who don’t know their real value “are missing opportunities and risking their chance of long-term success.”
Rob King, Director of Small Business at Intuit Canada, stated in an email to us that “there are three steps, which act as a virtuous circle, that entrepreneurs must follow to take control of their business’ finances and increase their financial literacy: get educated, get the right tools, and get a trusted advisor. To help with the education, Intuit has partnered with the Chartered Professional Accountants (CPA) of Canada to develop and deliver financial literacy curriculum, which will teach them the basic information that they need to thrive. Tools like financial management software, like QuickBooks Online, gives entrepreneurs the data to assess their businesses’ worth and identify opportunities for future growth. Finally, professionals like accountants and bookkeepers play an important role by working side-by-side with entrepreneurs, using data provided by tools like financial management software to create personalized overviews of business’ needs.”
Here are some key findings from the survey:
Canadian entrepreneurs don’t know their worth:
– 27 percent believe they may be undercharging based on the high level of value they provide through their work.
– 15 percent believe they may be overvaluing their offered goods/services
– 39 percent of small business owners report they do not believe they value their goods/services at market value
Manage their own finances:
– 87 percent small business owners manage their business’ finances themselves
– 51 percent do so with some help from an accountant or bookkeeper
– 35 percent manage their own business finances with financial management software and help from an accountant or bookkeeper
Need to improve their financial literacy:
– 46 percent of small business owners rated their knowledge of financial management as sufficient or less
– 12 percent of those surveyed believe that a lack of financial management tools and/or knowledge is the greatest barrier to small business success in Canada
Believe technology empowers their business:
– 86 percent of Canadian entrepreneurs agreed that the value technology adds to their business is worth the cost.
– 88 percent of small business owners agreed that technology makes their businesses more time- efficient
– 85 percent of small business owners agreed that technology makes their businesses more cost- efficient
– A previous Intuit study conducted in January 2014 revealed that about one-half (53%) of all new startups in Canada are run by part-time entrepreneurs, 32 per cent of which are tech startups.