A major campaign has been launched by the Financial Skills Partnership to promote financial literacy in business.

The FSP believe that if business leaders were better trained in the world of financial literacy, the economy would be on a more stable footing.

The latest generation of workers are often referred to as the ‘lost generation’ for the lack of business teaching they received in schools and colleges.

The FSP argues that if financial literacy and teaching do not improve it will be hard to preserve the UK’s position as a global business hub.

Better teaching would also encourage more young people to think about setting up their own businesses.

Approximately 99 per cent of businesses in the UK private sector are classified as SMEs (small to medium size enterprises) but lack of business aptitude leads to problems.

A study by Virginia University found that employees with limited business knowledge were 64.5 per cent less productive.

The most common mistake was to waste time trying to manage expenses rather than generate company revenue.

Liz Field, chief executive of Financial Skills Partnership, said: “Lack of awareness due to the absence of dedicated finance functions in small businesses, means business leaders struggle to keep on top of the financial health of their companies.

“Training and education for business as part of the main curriculum could provide a vital lifeline in helping leaders to perform basic but necessary business functions such as reading profit and loss statements.”

With this in mind the FSP has developed the Business, Administration and Finance Diploma for young people aged 14-19.