Online accounting platform, Sage One, has hinged the high rate of failure of small businesses especially before the second year of startup, on poor book-keeping as well as inadequate researches and lack of insight by business owners. To check such anomalies, the company at the weekend, unveiled an online platform through which small business owners can get the necessary counsel and advice needed for future business growth and prospects.
Specifically, the platform seeks to provide software through which entrepreneurs and small business owners in the country will have personal control and manage their records as well as ensure proper book keeping of their ventures using Information Communication Technology (ICT). Speaking with journalists in Lagos, the Director of Sage One, East-West Africa, Nikki Summers, said statistics has shown that 70-80 per cent of businesses fail in the second year of opening, basically due to lack of insight into their business.
“When you think about it, they have expenses and invoice sitting in a box, in a corner in the office and sometimes they try to run it on excel and that generally does not work. Because of that lack of insight in their second year, they start running into operational troubles due to cash flow. The second problem with the cash flow issues, they need funding to start growing their business but banks are not willing to give them loans because they cannot provide proper financials to say I am really going to pay back this loans”. Read more