A Comprehensive Analysis of the Business Literacies of Australian Small Businesses

Abstract

Little is known about the knowledge (literacy) of small business owners (SBO). This is of concern as the capabilities of SBOs may be central to the success of their business. For example, such literacies might influence the SBO’s ability to manage cashflow, know their obligations under the tax system and how to interpret the financial position of the business. This article reports a survey of small businesses in the service sector in terms of their literacy for financial statements, computer accounting software and business tax, and if there is any relationship between them. Results demonstrates that there is a linear relationship between them and that certain demographics are likely to have lower overall literacy.