File photo. Photo: RNZ
Accounting software firm Xero is offering a no-cost service to help boost small business financial literacy.
The 'Know Your Numbers' programme aims to give small businesses tools and support to help with their long-term success, whether or not they were Xero customers.
Xero country manager Bridget Snelling said the programme aims to help small businesses understand their financial position, along with free mentoring from Xero accountants and bookkeepers.
"We know small business owners are driven by a strong desire to build something extraordinary, but financial management often becomes their biggest roadblock," Snelling said, adding a government survey found just one-third of self-employed and small business owners could correctly answer the survey's financial literacy questions.
She said the knowledge cap was costing small businesses, with Stats NZ data from 2018 - 2023 indicating just 45 percent still in business beyond their first five years.
"We know financial literacy can be a position of privilege and we want to level the playing field so that owning a small business is fair game to all.
"Through this new programme, even taking five minutes a week to watch a video or listen to a quick podcast could set Kiwi small business owners on the path to productivity and profitability.
"Tools like this are invaluable after the rough few years our small business community has had, and we're excited to launch the programme and help support future growth."
Xero chief executive Sukhinder Singh Cassidy said the Know Your Numbers programme was designed to make life better for people in small business.
"Having a good level of financial literacy is crucial for a small business to succeed in the long-term. But all too often, small business owners lack confidence in their financial skills and do not have enough time to upskill," Cassidy said.
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