WORLD LEADERS must invest in and promote financial education among small business owners in order to encourage growth, ACCA has claimed.
Removing uncertainty in regulation and better publicising ways of gaining access to differing forms of funding were also recommended by the institute’s Global Forum for Small and Medium Sized Enterprises.
In its latest policy paper, Innovations in access to finance for SMEs the group claimed businesses and investors have lost faith in banks, while new capital and liquidity regulations are forcing banks away from traditional lending to small businesses.
Alongside that, ultra-low interest rates have sent investors in some parts of the world looking for better returns on their money, prompting them to explore new asset classes such as SME credit, trade credit and early stage equity.
Chair of ACCA’s Global Forum for SMEs, Rosanna Choi, said: “Our research suggests a worrying lack of financial awareness among the world’s entrepreneurs; as the SME sector’s most trusted financial advisers, finance professionals have proven they can lead the drive for financial education, and we call on policymakers to engage the profession more fully in their efforts.”