Following October’s Twitter debate between Just Cashflow and Bizitalk about the proposed exam, an educational expert has since given his opinions.
Professor John Thanassoulis, Head of Executive Education at Warwick Business School, felt entrepreneurs should be encouraged to have an idea and seek to make it a reality.
“Placing bureaucratic hurdles in their way is not, in my view, a good idea,” he said.
"A vibrant economy needs at least three things: entrepreneurs willing to start new businesses and take risks; informed and astute financial backers able to judge the quality of a company and offer useful guidance; and high quality corporate directors to oversee the strategic direction of a business.
“I think a National Directors’ Qualification would help with the second and third of these, but not the first.”
However, Professor Thanassoulis felt that, as firms become larger and start to recruit to their Board, fit and proper oversight is important.
“A national qualification would help here by ensuring Directors tasked with growing the productive base of our economy are financially literate and well-grounded in economic principles,” he said.
Just Cashflow’s John Davies felt that although Professor John Thanassoulis made “some excellent points”, entrepreneurs willing to start new businesses also need to be better qualified.
“A university-led qualification may prove too expensive or time consuming for some,” he added.
“However, there are plenty of good courses that teach business fundamentals. Also, you just have to type into any search engine - cash flow, KPIs, finance, employment responsibilities etc. and there is a wealth of information to study and leave you better prepared to enter the business world.”
Mr Davies went on to say that although Just Cashflow sees a lot of applicants that are totally on top of their business, too many don't appear to grasp the basic business fundamentals.
“As I said when I first raised this topic, alarm bells start to ring when someone doesn't know the difference between a cash flow forecast and a P&L,” he explained.
“Those that don't inspire confidence are going to struggle to raise finance.”
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