The claim comes from research conducted by restructuring and insolvency firm FRP Advisory who surveyed 150 accountancy, legal and financial advisors.
Of this group 60 per cent said that less than half of their SME clients produced regular management information on company results.
Simon Glyn, partner at FRP Advisory, said: “This is really concerning - not only does it mean that businesses are struggling to track their own performance, but in an environment where securing funding requires solid trading and forecast data, SMEs are falling at the first fence.”
He added: “As the economy starts to improve, obtaining finance will be critical to helping these entrepreneurial businesses grow in line with demand – but without this management information, banks simply will be unable to grant funding requests.”
The research also showed that 67 per cent of advisors surveyed predict a rise in the number of corporate insolvencies during 2011.
Glyn said: “It’s key that entrepreneurial businesses lacking management information do not wait until an upturn arrives to put the necessary systems in place.”
He added: “Business failures have historically risen as we come out of recession. As such, it is imperative that businesses plan for any upturn in the economy now, which may lead to increased working capital requirements and bank funding.”