Financial literacy is more than a personal skill­­­­—it’s a critical business advantage. For small business owners, understanding core financial principles can mean the difference between growth and struggle. Yet, according to a recent study from Quickbooks, only half (54%) of small business owners say they had a good understanding of financial knowledge before starting a business. Through Everfi’s Achieve platform, we deliver financial education for small business owners to strengthen decision-making, improve cash flow, and build long-term stability.

Why Financial Literacy Matters for Entrepreneurs

According to the U.S. Small Business Administration, approximately 20% of small businesses fail within the first year, and nearly 50% don’t make it to year five. A significant reason? Poor financial management.

Understanding cash flow, budgeting, credit, and emergency planning allows business owners to:

• Make informed decisions
• Avoid common financial pitfalls
• Navigate economic uncertainty
• Build long-term sustainability

And yet, many entrepreneurs start with great ideas and big dreams—but little formal training in managing business finances.

Key Financial Concepts Every Business Owner Should Know

Strong financial management is one of the cornerstones of long-term business success. Whether you-re launching your first venture or managing a growing enterprise, understanding core financial concepts can help you make better decisions, anticipate challenges, and identify opportunities for growth. The following topics represent essential skills and knowledge areas that every small business owner should master to ensure stability, resilience, and strategic direction.

1. Budgeting Skills for Small Business
   Learn how to build a business budget that accounts for variable costs, fixed expenses, and seasonal cash flow changes.

2. How Business Credit Impacts Growth
   Explore how to establish and maintain a business credit profile—and why it matters when securing financing.

3. Creating a Financially Sound Business Plan
   Gain insight into the financial sections of a business plan, including sales forecasts, operating expenses, and breakeven analysis.

4. Choosing the Right Banking Services for Your Small Business
   From merchant services to business checking accounts, understand how to choose the right financial tools.

5. Mastering Business Financial Statements
   Learn how to read and interpret balance sheets, income statements, and cash flow reports to evaluate the health of your business.

6. Financial Planning for Unexpected Challenges
   Prepare for disruptions with strategies that include emergency savings, insurance, and contingency planning.

Real-World Impact Through Education

Everfi’s small business pathways and modules are designed to meet entrepreneurs where they are—whether they’re just starting out or managing growth. Delivered in partnership with financial institutions, these sessions are:

• Accessible: No cost to participants
• Interactive: Built with real-world scenarios
• Flexible: Offered in virtual or in-person formats

At Everfi, we believe in empowering small business owners with the tools they need to build financial confidence and resilience. That’s why our Achieve platform includes a dedicated curriculum focused on small business financial education.

Our goal is simple: to help small business owners feel more confident in their financial decisions and better prepared to weather challenges.

Learn More About Achieve

Investing in financial education for small business owners is an investment in community growth and economic stability. With Everfi’s Achieve platform, your financial institution can deliver measurable, impactful education to local entrepreneurs­­—helping them grow their business and strengthen their financial health. Contact us today to explore how Achieve can power your small business support strategy