61 Percent of Small Businesses Didn’t Create a Budget in 2018

A new survey from Clutch just revealed close to two thirds or 61% of small businesses didn’t have an official documented budget for 2018.This problem is more prevalent with businesses that have 1 to 10 employees as 74% in this group did not create an official budget. The number goes down to 21% for businesses with more than 10 employees, a difference of more than 50 percentage points.The data from the Clutch survey shows growing companies have come to understand the importance of creating a budget, while many small businesses still don’t have a full appreciation of the benefits of having an official budget. The author of the report, Riley Panko said businesses of all sizes should create a budget if they don’t want to risk the financial health of their organization.