The Financial Illiteracy Problem Among Small Business Owners

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As I’ve met small enterprise homeowners over the past twenty years, I’ve realized that financial illiteracy is rampant. Less than 50%  of these I’ve met can learn their revenue and loss assertion and solely 25% can perceive their stability sheet.

My visitor on The Small Business Radio Show this week says this challenge is particularly true for minorities. Lisa L. Baker has had a distinguished profession in company America spanning almost three a long time. She has held administration and government positions for a number of Fortune 500 firms that embody Synchrony, Microsoft, Citigroup, and Bank One.  At Synchrony, Lisa was one in all solely 9 Black feminine executives amongst 16,000 staff, holding the place of Senior Vice President and General Manager.

Most just lately, she based a life teaching firm, Ascentim, to comply with her ardour for serving to others attain their peak in connections, careers, and funds. This 12 months, Lisa was named a 2022 Brightside Trailblazer in Business by Brightside Global Trade.

Lisa discusses the hardships she skilled in her life. Her mother and father had been poor and uneducated; they had been a maid, a gardener and a chauffeur. Their recommendation was to remain in class to get job. Lisa says “I did that but still had to live through bankruptcy even though I was a financial service professional, then divorce, and career setbacks.” She ultimately was in a position to get of all that debt and retire at age 54.

It is uncommon that folks speak to their kids about cash. Lisa explains that “financial illiteracy is a problem in general and that’s especially true for minorities. This is compounded by the fact that the earnings gap means minorities start off behind and the gap only widens over time. For example, Black Americans earn 30% less than Whites. The less people make the less they understand how money works. Lower inheritances amounts are also a factor.”

Listen to Lisa speak in regards to the options that embody coverage adjustments that forestall discrimination and extra monetary schooling for everybody at an earlier age.

Listen to the entire interview on The Small Business Radio Show.

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Image: Lisa L. Baker




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