During the recent (SA)UEO SME panel discussion, Caryn Maitland, Chartered Accountant and educator, provided a passionate and insightful perspective on the critical role that financial literacy, ethical guidance, and multidisciplinary support play in the success of small to medium-sized enterprises (SMEs). Drawing from her experience as an educator and business consultant, she offered valuable advice for SMEs looking to thrive.
The Need for Financial Literacy in SMEs.
Caryn emphasised the fundamental importance of financial knowledge for SMEs, stating that financial skills are often lacking in the SME space. Without a solid understanding of budgeting, cash flow management, and the implications of loans and taxes, many SMEs struggle to stay afloat. The pandemic exacerbated this issue, as businesses took on loans without fully understanding their long-term obligations.
Conclusion: SMEs must prioritise financial literacy. Whether through hiring financial consultants or developing internal financial management capabilities, businesses need to have a strong grasp on their financial health to make informed decisions and ensure long-term sustainability.
Ethical Business Practices as the Foundation of Success.
Caryn stressed the importance of ethics in business, not just for accountants but for SMEs themselves. Businesses need to separate personal finances from corporate finances and ensure that decisions are made with integrity. Many SMEs fail because they misuse company funds for personal needs, without realising the long-term damage it causes.
Conclusion: Ethical business practices are non-negotiable for sustainable success. SMEs should work closely with ethical advisors who can guide them in managing their finances responsibly and ensuring that their business operates with transparency and accountability.
The Role of Multidisciplinary Support.
Caryn advocates for a multidisciplinary approach to supporting SMEs. Accountants, lawyers, financial advisors, and other professionals need to work together to provide holistic support for SMEs. This collaboration ensures that businesses not only comply with regulations but also have the tools and strategies they need to grow.
Conclusion: SMEs should seek out multidisciplinary support to ensure they are well-rounded in their business strategies. By working with a team of experts, SMEs can navigate the complexities of compliance, financial management, and growth strategies more effectively.
The Importance of Education and Mentorship.
Caryn highlighted the importance of education at all levels, from school children learning basic financial literacy to business owners being mentored through the growth phases of their companies. Education provides the foundation for better decision-making and long-term success. SMEs, in particular, benefit from mentorship programmes that help them plan for future expansion and avoid common pitfalls.
Conclusion: Investing in education and seeking mentorship are key for SMEs aiming to grow and scale. SMEs should actively pursue opportunities to learn and gain guidance from experienced professionals who can help them navigate challenges and prepare for future growth.
Building a Future with Healthy, Well-Governed Businesses.
Caryn concluded by calling for the need to create healthy, well-governed businesses that can grow from small to medium-sized enterprises and eventually become larger players in the market. With the right financial knowledge, ethical practices, and support systems, SMEs have the potential to thrive and contribute to South Africa’s economy.
Conclusion: For SMEs to evolve into larger, successful businesses, they must focus on strong financial management, ethical decision-making, and seek out comprehensive support systems. This holistic approach will help businesses not only survive but flourish in a competitive environment.