ATLANTA, May 1, 2019 /PRNewswire/ -- The annual Small
Business Pulse Survey from SunTrust reveals a strong small business
community, with two-thirds of small business decision makers
reporting strength in their local economy (68 percent) and the U.S.
economy (65 percent). The positive outlook is bolstered by
two-thirds of decision makers who report their business is strong
(67 percent), that their company's financial well-being is equal to
or greater than last year (85 percent), and that they have less
work-related stress.
Though they feel positive about their business, only half of
small business owners (49 percent) have a clearly stated plan for
business growth. Among business owners who do have a growth plan,
only one third (33 percent) have shared it with their external
business partners and only one quarter (27 percent) have shared
their plan with an advisor. This reluctance to create and share a
plan is in contrast to the fastest-growing companies in the survey.
Fast-growing companies are one-and-a-half times more likely to have
a stated growth plan and twice as likely to share their plan.
"Small businesses are a cornerstone of successful communities so
we should celebrate their optimism about the economy and their
business," said Reggie Davis, head
of Business Banking at SunTrust Bank. "By developing a growth plan
and discussing it with partners and advisors, an entrepreneur can
gather insights that inform decisions, increase their confidence,
and create a positive impact on their business, employees and
community."
The absence of a plan could be one reason cash shortfalls are
common among small businesses. More than one third of small
businesses (37 percent) experienced a cash shortfall in the past
year, and 75 percent faced variations in their cash flow. Cash flow
variations are often driven by seasonality (36 percent), expense
fluctuations (28 percent), and the loss or gain of major customers
(20 percent).
When faced with a shortfall, small business owners often balance
business and personal financial solutions to keep their business on
track:
- 36 percent use personal assets for a cash infusion
- 26 percent dip into their business cash reserves
- 26 percent tap a business line of credit
- 25 percent forgo their salary for the well-being of the
business
- 19 percent take out a personal loan
Cash shortfalls may have significant impacts to the owner and
business, including reduced productivity, damage to the owner's
credit, slower production and distracted management.
"Monitoring cash flow is critical to the health of a small
business and 30 percent of business owners report they need to
improve in this area," said Davis. "By discussing a business
owner's unique situation, our bankers are able to provide advice,
and identify technology and banking solutions that can help a
business enhance its cash flow and avoid a cash crisis."
To help small business owners improve their financial
well-being, SunTrust has created a Small Business Best Practices
Site with additional survey findings, tips and tools for small
businesses, and insights that can help generate business
growth.
About the Survey
Decision makers from 515 U.S. small
businesses with annual revenue between $100,000 and $5
million participated in the SunTrust/Radius Global Market
Research survey fielded February 26 –
March 8, 2019. Survey results have a
maximum margin of error of +/- 5 percentage points at a 90 percent
confidence level.
About SunTrust Banks, Inc.
SunTrust Banks, Inc. (NYSE:
STI) is a purpose-driven company dedicated to Lighting the Way to
Financial Well-Being for the people, businesses, and communities it
serves. SunTrust leads onUp, a national movement inspiring
Americans to build financial confidence. Headquartered in
Atlanta, the Company has two
business segments: Consumer and Wholesale. Its flagship subsidiary,
SunTrust Bank, operates an extensive branch and ATM network
throughout the high-growth Southeast and Mid-Atlantic states, along
with 24-hour digital access. Certain business lines serve consumer,
commercial, corporate, and institutional clients nationally. As of
March 31, 2019, SunTrust had total
assets of $220 billion and total
deposits of $162 billion. The Company
provides deposit, credit, trust, investment, mortgage, asset
management, securities brokerage, and capital market services.
Learn more at suntrust.com.
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SOURCE SunTrust Banks, Inc.