Overconfidence, a common entrepreneurial trait, could contribute to this disconnect. Entrepreneurs may neglect available financial data, leading to inaccurate forecasts of their likelihood of success. Financial advisers should work closely with entrepreneurs to educate them about potential financial shortfalls and instil a sense of responsibility in managing their financial well-being.
Conclusion
In conclusion, this study challenges the conventional wisdom surrounding the role of financial advisers in the entrepreneurial journey. Entrepreneurs' motivations, financial mindset, and reluctance to engage with financial advisers reveal a complex landscape. Financial advisers must adapt their approach to align with entrepreneurs' goals, bridge the advice gap, and reshape the negative perception of their industry.
By addressing these issues and providing proactive, client-centric services, financial advisers have the potential to unlock untapped financial potential for entrepreneurs. Ultimately, this collaborative effort can empower entrepreneurs to achieve their business and personal ambitions and passions, ensuring a more secure and fulfilling financial future.
I have certainly adapted my approach to this community due to my findings. Entrepreneurs and the broader SME sector are distinct, and financial planning should mirror the related challenges and complexities. I realise that to achieve this means increasing investment and commitment to the sector to understand further and educate.
The most significant investment is time. I now solely focus on the entrepreneur community; I do not believe you can spread yourself across various demographics. I have handed existing non-entrepreneur clients to colleagues in our business, thus giving me more time to work with entrepreneurs.
The study revealed to me that more time needs to be spent with entrepreneurs to understand what drives them individually. It could be to make as much money as possible, but the study’s participants challenged this. Digging deeper will provide opportunities to educate and increase the value of financial advice to entrepreneurs.
I’m spending more time with the broader entrepreneurial network, be it accountants, growth advisers, lawyers and so on. I saw no evidence that business advisers worked collectively. I certainly believe that there are synergies to utilise that will benefit entrepreneurs if there is greater collaboration. Time will tell.
