Fractional Chief Financial Officer (CFO), A Catalyst to SMEs Survival for Economic Growth

Oghenevwire . F. Okugbere
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Oghenevwire . F. Okugbere: Department of Finance, Fairfax University of America, Canada

International Journal of Research and Scientific Innovation, 2025, vol. 12, issue 1, 389-408

Abstract: In every economy of the world, the part played by SMEs cannot be overemphasized. Name it, Africa, Asia, Europe, and America. This sector is the backbone of all economies and cannot be ignored. In the United States of America for example, every successive regime has included it in their manifesto and campaigned vigorously during every election. Ultimately, has made it a pivotal part for economic growth and development. SMEs being the pillar of economic growth do not exist without their own challenges. Some of the key issues or challenges faced are Inflation, high interest rates, access to credit, hiring and employee retention and Supply chain disruptions are just a few of the challenges that give small business owners sleepless night. The role of a fractional CFO (Chief Financial Officer) is becoming increasingly relevant to addressing these small and medium-sized enterprises (SMEs) challenges especially in the United States, particularly in stimulating economic growth and fostering resilience in the broader economy. A fractional CFO provides high quality level financial leadership on a contract basis without the cost of hiring a full-time CFO. By offering strategic financial advice, financial modeling, cash flow management, and risk mitigation, a fractional CFO can act as a catalyst for SME survival and growth. Fractional CFOs are highly skilled professionals with a blend of technical qualifications, strategic insight, and business experience. To effectively support an SME, fractional CFOs should have the right mix of education, certifications, industry experience, and soft skills to provide both day-to-day financial management and long-term strategic advice. Businesses looking to hire a fractional CFO should ensure they clearly define their needs, vet candidates for relevant experience, and set expectations for the engagement to ensure a successful partnership. SMEs seeking to maximize financial strategy, boost profitability, and scale successfully, hiring a fractional CFO (Chief Financial Officer) can be a wise decision. To choose the best fractional CFO, nevertheless, one must carefully evaluate their credentials, experience, and certifications to be sure they can offer the required knowledge. A thorough reference to the essential credentials, licenses, and work history that companies should consider before hiring a fractional CFO can be found below.

Date: 2025
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