Financial literacy the backbone to a successful business
Small business owners in uMkhanyakude recently learned how to operate a successful business and maximise their profits
FINANCIAL education and planning is the cornerstone to a successful business. This is what hundreds of uMkhanyakude entrepreneurs learned at a recent financial literacy summit.
Aimed at bringing financial education to the masses, the KZN Treasury Department collaborated with various financial institutions, including KZN Financial Literacy Association (FLA), South African Revenue Service (SARS) and the International Labour Organisation, for the one-day summit in Hluhluwe.
All small business owners, including tavern owners, construction companies and informal traders, were invited to attend.
While ‘maximising profit in business’ was the theme of the day, attendees were taught the correlation between healthy personal finances and a successful business.
‘Banks take the stance that you will not succeed in business if you cannot manage your own money,’ said KZN Treasury Head, Simiso Magagula, who also spoke of the government’s non-financial support, including mentoring programmes, to small business owners.
Preliminary results of the department’s first ever pilot study on household financial literacy were released at the summit.
Slightly more than 50% of households surveyed have a budget, more than half do not have an emergency fund, 62% are not covered by a medical aid and 60% do not know where to seek financial assistance.
‘We believe this survey… can assist us to help people better if we know what their challenges are,’ said Magagula.
Results are currently being analysed and a full provincial survey is being considered.
Speaking of government spending, Magagula said the government must follow the same rules as any ‘for profit’ company.
‘We must understand and manage our finances, be diligent in cutting frivolous costs and boost productivity among employees’.
KZNFLA Chair, Artwell Hlengwa, expressed his support of the summit and said, ‘You are taking our province and people forward when you enable them to make informed financial decisions.’
