Small Business Financial Health by the Numbers

How Financially Healthy Is YOUR Business? Small Business Financial Health By The Numbers Four organizations, Pepperdine University, the Federal Reserve Bank of Chicago, the Federal Reserve Bank of San Francisco and FundWell came together to measure the financial health of small businesses. They wanted to know: Are small businesses financially healthy today? How do women- and minority- owned businesses compare? And what's the connection 3 between financial management and business success? Why is This Important? Because Small Business Growth Drives Net New Jobs 1993-2009 US Net New Job Growth! 9.8 million jobs 65% http://www.sba.gov/advocacy/7495/29581 Key Findings: Businesses with above average or excellent financial health scores are more likely to be male-owned, non-minority-owned and generate greater than $1 million in annual revenues. Non-Minority 79% Male 72% Female 28% Minority 21% Among our survey respondents just 22% and 8% of above average and excellent financial health businesses generated less than $1 million in annual revenues. Survey Says: There Are Four Common Practices of Financially Healthy Businesses Had a strong knowledge of and experience with certain credit products Sustained a Intentionally set aside cash More higher level of unused credit balances regularly took steps to budget to meet payroll obligations Quantifying the Three Factors of Financial Health Businesses that are financially healthy have the following three factors in common: 1) Financial Knowledge Equipment Leases Very/extremely knowledgeable about equipment leases 65% Poor knowledge about equipment leases 25% 2) Credit Experience Have Secured Financing from a Bank Businesses in excellent financial health 75% Businesses in above average financial health 38% Businesses in poor financial health 0% 3) Business Practices Always Develop a Budget and Maintain Separate Bank Account for Payroll Businesses in excellent financial health 60% Businesses in poor financial health 5% SO Available, Unused Credit 87% and 95% of businesses with above average and excellent financial health, respectively, reported that they still had credit available to use. Businesses in poor financial health 65% Small Business Financial Health Report Download a FREE copy of the report with complete data Small Business Financial Health Analysis Download Now! FundWell. How Fundable Are You? sok o days 0% Find out by using the FundWell Lender Matching App Fundaby A Huch A A Soen A lew A What were your sales last year? What will your sales be this year? Get Prequalified Now What is your personal credit score? Select Small Business Financial Health Research Partners PEPPERDINE UNIVERSITY Graziadio School of Business and Management FEDERAL RESERVE BANK OF CHICAGO RVERN PEPPERD INE PRIVATE CAPITAL MARKETS PROJECT bachoolpepperdine.eduprivatecepital I INC. MAY FundWell