Study: Small Business Owners are Not Taking Full Advantage of Available Resources
April 28 2016 - 2:56PM
Business Wire
Nearly four out of five small business owners admit that they
have not taken full advantage of national and community resources
dedicated to helping small businesses develop and grow, according
to a national survey recently conducted by Fifth Third Bank.
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“It’s no secret that small businesses are
the backbone of the economy, but as any entrepreneur can attest,
starting or growing that business is no easy task,” said Kala
Gibson, head of business banking at Fifth Third Bank. “As we join
with the rest of the nation in celebrating Small Business Week, we
strongly encourage small business owners to explore all the
available products and resources that will help your business
grow.” (Photo: Business Wire)
In advance of Small Business Week May 1-7, Fifth Third Bank
(NASDAQ: FITB) commissioned a national survey of more than 500
small business owners to assess the landscape – and diagnose common
pain points that U.S. small business owners face. According to the
results, 81 percent of survey participants said they haven’t worked
with local small business resources (e.g., chamber of commerce,
SCORE, etc.).
Kala Gibson, Senior Vice President and Head of Business Banking
for Fifth Third Bank, notes that these pain points are common, but
can assure small business owners that there are plenty of resources
to help improve their cash flow and reach their business goals.
“It’s no secret that small businesses are the backbone of the
economy, but as any entrepreneur can attest, starting or growing
that business is no easy task,” Gibson said. “As we join with the
rest of the nation in celebrating Small Business Week, we strongly
encourage small business owners to explore all the available
products and resources that will help your business grow.”
When it comes to the primary resources for help and advice for a
small business owner, survey respondents said they consider other
small business owners (28%), family (25%), friends (18%), the
Internet (11%) and their attorney (6%) as primary resources for
help and advice before they consider their banker (5.49%),
community assistance provider, chamber of commerce and SBA1. The
survey also revealed that 38 percent of small business owners say
they need help growing revenue and increasing profits.
Fifth Third Bank is committed to the development of small
businesses throughout the bank’s footprint. In 2015, the bank
loaned more than $2 billion to small businesses to help start and
grow their businesses. The bank recently announced a five-year
community commitment of $7 million to support community resources
that are vital partners in helping businesses grow.
Greenwich Associates recognized Fifth Third as one of the “best
brands” in small business banking. Additionally, the State Small
Business Credit Initiative (SSBCI) revealed last year that Fifth
Third is the largest lender by dollar amount since the program’s
inception in 2011.
Despite the vast array of financial assistance available to
small business owners, Fifth Third’s survey also showed that small
business owners have a lot of personal cash tied up in their
business:
- Three out of four small business owners
used personal savings or retirement funds to start their
business
- 28% said they would use a credit card
to inject capital into their business
- Nearly four out of 10 said they didn’t
have enough cash reserves to meet their business objectives
- Only 7% had applied for an SBA
loan.
“It’s okay to have a portion of your personal wealth in your
business, but you shouldn’t drain your savings or create excess
debt to fund daily business operations,” Gibson said. “By working
closely with your banker and community assistance providers like
SCORE, small business owners can improve their cash flow and turn
personal capital into working capital.”
For more information on how Fifth Third Bank supports small
businesses, please visit https://www.53.com/business.
About Fifth Third Bank
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. The Company has $142 billion in
assets and operates 1,241 full-service Banking Centers, including
95 Bank Mart® locations, most open seven days a week, inside select
grocery stores and over 2,500 ATMs in Ohio, Kentucky, Indiana,
Michigan, Illinois, Florida, Tennessee, West Virginia,
Pennsylvania, Georgia and North Carolina. Fifth Third operates four
main businesses: Commercial Banking, Branch Banking, Consumer
Lending, and Investment Advisors. Fifth Third also has an 18.3%
interest in Vantiv Holding, LLC. Fifth Third is among the largest
money managers in the Midwest and, as of March 31, 2016, had $303
billion in assets under care, of which it managed $26 billion for
individuals, corporations and not-for-profit organizations.
Investor information and press releases can be viewed at
www.53.com. Fifth Third’s common stock is traded on the Nasdaq®
Global Select Market under the symbol “FITB.” Fifth Third Bank was
established in 1858.
Copyright © 2016 Fifth Third Bank, Member FDIC,
Equal Housing Lender, All Rights Reserved.
1Other small business owners (28.64%), family (25.06%), friends
(18.38%), the Internet (11.46%), and attorney (6.44%) all outrank
banker (5.49%), community assistance provider (1.67%), chamber of
commerce (0.72%) and SBA (0.72%) as primary resources for
help/advice with business.
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version on businesswire.com: http://www.businesswire.com/news/home/20160428006776/en/
Fifth Third BancorpSean Parker,
513-534-6791sean.parker2@53.com
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