In Australia the SME (Small and Medium Enterprises) are greatly effected by their ability to manage cash flow. When surveyed nearly 93% of SME’s felt that their cashflow could be better, with only 8.5% actually satisfied with the way they were handling their cash flow. Studies have found that cash flow management can greatly impact long term growth rates for new business. It is estimated that these small business missed out on up to $222.5 Billion in 2016 due to poor cashflow management.
Key Takeaways:
- Australia’s SME (Small and Medium Enterprise) community is greatly effected by cashflow management.
- SME’s that are unhappy with cashflow management as it stands in their business represents huge majority of 92.5%.
- The lack of knowledge and skill in managing cashflow is costing the small businesses nearly $222.5 Billion in annual revenues in 2016.
“Seven out of 10 growth SMEs said if their cashflow was better in 2016, they could have produced at least 10 per cent revenue growth, and almost a quarter said the revenue increase would have been 25 to 50 per cent.”
Leave a Reply