Is Financial Literacy Important to the Success of Small Business and Does This Align with the Perception of Detroit Small Business Owners?

Abstract

The purpose of this study is to analyze the importance of financial literacy to the success of small businesses in Detroit and whether Detroit small business owners perceive financial literacy to be an important aspect in the ongoing success of their business. In order to achieve this, a survey of Detroit small business owners was conducted. The survey asked participants to provide information about how accounting functions were handled in their business, the level of confidence owners had about how their business finances were handled, and whether they felt knowledgeable enough to manage their businesses finances and financial responsibilities. Results showed that the majority of small businesses owners believed that finances were important to their business. The majority of respondents handle their own business finances and felt confident that they could manage their businesses finances and financial responsibilities.