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BizReport : Research archives : May 06, 2019

Study: 1/3 SMBs using personal cash for business

Small business owners are using personal assets to strengthen the financial position of their business. That is one key finding from SunTrust's annual Small Business Pulse Survey. Researchers found that about 36% of SMB owners use personal assets for cash infusions to their business.

by Kristina Knight

Overall, according to the report. small businesses are optimistic about their future and the overall US economy. Researchers found that 68% believe their local economy is strong and that 65% believe the same about the overall US economy. About two-thirds (67%) say their own business is strong.

But, while most feel their business is in a good position, fewer than half (49%) have a written strategy to grow their business, which could be a reason that about one-third use personal assets for cash infusions.

"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."

Other interesting findings from the report include:

▪ 26% of SMBs have used money from the cash reserve of their business
▪ 26% have used money from their business line of credit
▪ 25% have gone without a personal salary to save money for their business

More data from the SunTrust survey can be accessed here.

Tags: small business credit, Small Business Pulse Survey, small business tips, SMB confidence, SMB trends

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