CINCINNATI, May 3, 2016 /PRNewswire/ -- 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 survey recently
conducted by Fifth Third Bank.
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In advance of Small Business Week May
1-7, Fifth Third Bank (NASDAQ: FITB) conducted a national
survey of more than 500 small business owners to assess the
landscape – and diagnose common pain points – of U.S. small
business owners. 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.). Forty-one
percent were unsure if the United States Small Business
Administration (SBA) had resources to help them. Roughly 38 percent
of small business owners say they need help growing revenue and
increasing profits.
Kala Gibson, Senior Vice
President and Head of Business Banking for Fifth Third Bank, notes
that these pain points are common, but assures 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."
Fifth Third customer Lindsay
Robinson recently acquired Ohio-based Wall Decal World, a business that
produces custom designs and wall decals for businesses and home
use. Lindsay was originally hired by the owner of the company as a
graphics designer 3.5 years ago and decided to work with the former
owner to purchase the business.
She began the process by connecting with the Warren County Small
Business Developmental Center (SBDC), a technical assistance
provider for small businesses and aspiring entrepreneurs. They
helped her outline her business plan and gather documents required
to secure an SBA Express loan.
"The SBDC helped me prepare my business plan and gather the
appropriate documentation to apply for an SBA loan," Robinson said.
"I was already a retail customer with Fifth Third, and the bank was
instrumental in helping me secure a loan to purchase the
business and the rest is history."
Gibson notes that Robinson's approach to purchasing the business
was correct and encourages businesses to try pursuing a similar
path.
"By taking advantage of the many free resources available in
their community, small business owners can greatly improve their
success rate," Gibson said. "I was shocked to learn that fewer than
5% of small business owners said they use their banker or community
assistance provider as a primary resource for business advice."
Fifth Third Bank is committed to the development of small
businesses throughout the bank's footprint. The bank recently
announced a five-year community commitment of $7 million to support community resources that
are vital partners in helping businesses grow. In 2015, the bank
loaned more than $2 billion to small
businesses to help start and grow their businesses.
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 use 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 and Small Business Development Centers, 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
$141 billion in assets and operates
1,254 full-service Banking Centers, including 95 Bank
Mart® locations, most open seven days a week, inside
select grocery stores and 2,593 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West
Virginia, Pennsylvania,
Missouri, 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 December
31, 2015, had $297 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. Member FDIC
Copyright © 2016 Fifth Third Bank, Member FDIC, Equal
Housing Lender, All Rights Reserved.
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SOURCE Fifth Third Bank (NASDAQ: FITB)