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In a bid to curb the myriad of challenges militating against the growth of Small and Medium-sized Enterprises (SMEs) globally, a recent study has identified the expertise of Fractional Chief Financial Officers (CFOs) as one of the catalysts for SMEs survival and economic growth.
Oghenevwire Okugbere revealed in his recently-concluded research titled: “Fractional Chief Financial Officer (CFO): A Catalyst to SMEs Survival for Economic Growth,” published in February 2025.
“A Fractional CFO is a financial expert that provides financial services on a need bases. A fractional CFO provides the same high quality level financial leadership on a contract basis without incurring the cost associated with hiring this 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,” the researcher posited in his study.
According to Okugbere, fractional CFOs could help SMEs surmount key challenges faced in business, including; inflation, high interest rates, access to credit, hiring and employee retention, logistics and supply chain disruptions, among others.
“85% of SMEs who hired a CFO, whether full-time or part-time, saw an increase in their capacity to plan and predict business performance according to a CFO Alliance poll. This illustrates how having financial knowledge directly leads to wiser choices and more efficient use of available resources,” he asserted.
Citing another research finding by Small Business Trends, Okugbere noted that companies with structured financial strategies performed significantly better than those without.
SMEs being a major pillar for economic growth in any economy do not exist without their own challenges. Some of these challenges give small business owners sleepless nights. The role of a fractional CFO is becoming increasingly relevant to addressing these SMEs challenges especially in the United States, particularly in stimulating economic growth and fostering resilience in the broader economy.
Describing fractional CFOs as highly skilled professionals with a blend of technical qualifications, strategic insight, and business experience, Okugbere explained that fractional CFOs do 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 to effectively support SMEs growth.
“For SMEs seeking to maximize financial strategy, boost profitability, and scale successfully, hiring a fractional CFO can be a wise decision. To choose the best fractional CFO, nevertheless, SMEs must carefully evaluate their credentials, vet candidate for relevant experience, clearly define business needs and certifications of potential fractional CFO to be sure they can offer the required services,” the research asserts.
The study also explored several case studies to ascertain the impact of fractional CFOs, even as it analyzed several crucial elements that contribute to a CFOs ability to propel financial success.
It concludes that SMEs, in their search for CFOs, should seek a thorough reference to the essential credentials, licenses, and work history; before hiring a fractional CFO.
