Many small, independent retailers are threatened by a lack of basic financial knowledge, according to a survey.
One third of business owners did not know what the term 'working capital' meant, while over half could not explain what pre-tax net profit margin is. The accountancy firm Sage surveyed 216 independent shop owners from towns that featured in Mary Portas's review of failing town centres.

Ms Portas worked with little independent businesses across the country to help them thrive and help re-invigorate the high streets and boost their local economies. But Sage said that retailer's financial "blind spots" were a result of the pressures to stay buoyant among competitors and in the economic climate with increasing business rates and rent.

Lee Perkins, who works with small businesses at accountancy firm Sage, said: "Financial understanding underpins every business in the UK and is key to success, no matter what sector you operate in." Companies like Sage and Kashflow, a London-based accountancy business, have attempted to make it easier for small business owners to do their own accounts, but many use an accountant.

The survey, conducted on behalf of Sage, found that only one in ten shop owners used accountancy software and a quarter of those surveyed used either Microsoft Excel or pen and paper to do the books.

Mr Perkins added: "When you have to be an expert in customer service, marketing, online and everything else, it is not surprising that some aspects of business do not receive all the attention you want to give them.

"For any firm to take advantage of increasing confidence in the economy, understanding of basic finance is essential."

According to the Local Data Company, over 20 stores closed every day last year on Britain's high streets as shoppers had less and less disposable income. The towns covered in the survey included Bedford, Stockport, Croydon and Dartford, the same that featured in the Portas Review of the high street.

Bill Grimsey, the former chief executive of DIY chain Wickes, is set to launch his own review into the future of the high street in September.