Business Financial Health and Resilience Index Development Methodology

Seymour Financial Resilience Index ®

The creation of the Index began as we developed and validated the Business Financial Health and Resilience Framework over several years, with this being published in 2025 and shared following the India SME Business Financial Health and Resilience Study. The data from this study and many of the included indicators formed the basis of this Index model, with multiple models being developed.

Following this, we consulted with leading organizations and referenced additional financing and business health indicators from studies and real-life perspectives. In December 2025, we launched the Canada SME Business Financial Health and Resilience Study, with the following analytics being used to further develop multiple versions of the regression model alongside consultations with business bankers.

From there, we selected the model that was both strong, in line with our overarching framework and appropriate from a real-life perspective.

This Index sits alongside a Business Financial Health and Resilience Study, with the ability for customized questions and analytics for clients and partners globally. In addition, our Institute develops customized studies and proprietary solutions, leveraging our deep SME business financial health expertise, impact measurement and innovation methodologies.

The Business Financial Health and Resilience Index Model is a strong model. The eight indicators account for 63 percent in the variance in the business financial health and resilience construct as of December 2025. All indicators are significant at a 95% confidence interval, with p-values less than 0.05.

  • The Business Financial Health and Resilience Index Model, Seymour Financial Resilience Index ® is a proprietary regression model developed based on an iterative process to regressing and evaluating over 42 potential indicators against the self-reported financial health and resilience construct, using the multiple linear regression technique.
  • Indicators were developed in line with the SME Business Financial Health and Resilience Framework, including business financial health, business financial resilience and business owner financial wellness/ stress indicators. The model combines financial behavioural, operational, financial stress and protection-related indicators, amongst others, to provide a holistic picture of SMEs’ business financial health and resilience [1,2,3].
  • In the end, eight variables were determined to account for 63.4 percent of the variance in the business financial health and resilience construct as of December 2025, based on the final adjusted R².
  • The model was developed using Canada and India Small and Medium Enterprise (SME) Business Financial Health and Resilience Studies datasets with over 15 model iterations developed, tested, and reviewed [4]. There were six stages of the Index model development [5].
  • The eight indicators in the model were selected based on their statistical contribution to the business financial health and resilience construct; conceptual fit with the framework, interpretability, and practical relevance for small and medium-sized enterprises.
  • The regression model indicators (independent variables) are significant at a 95% confidence interval, with p-values less than 0.05.

The Index model can be further validated and refined, including for specific country contexts, over time and with our partners.

The high-level technical note on the Index is available here, with a more detailed technical note available for clients and partners utilizing the Index.