News & Insights

How Small Businesses Overcome Inflation, Cash Flow, and Workforce Challenges

Small businesses serve as the backbone of the economy, employing nearly 61.6 million Americans and driving innovation across various industries, according to the U.S. Chamber of Commerce. However, they often face economic challenges that disproportionately affect them due to their limited resources.

Navigating Cash Flow and Risk Management in Entrepreneurship

Cash flow is the lifeblood of any business, and a lack of it is one of the leading causes of startup failure. According to a study by U.S. Bank, a staggering 82% of businesses fail due to poor cash flow management or a lack of understanding of how to price their products or services effectively. Furthermore, a report by JPMorgan Chase Institute found that the median small business holds only 27 cash buffer days' worth of cash reserves.

Entrepreneurship rates have been trending upwards in the United States for the past 19 years.

The top three challenges in entrepreneurs:

1) Recruiting

2) Inflation

3) Insufficient Capital or Cash Flow.