Stenn Survey: Almost a Quarter of Small Businesses Have Fewer Than Six Months of Cash Reserves

Findings reveal that access to capital could jeopardize the livelihoods of over 45% of the American workforce

Stenn Survey: Almost a Quarter of Small Businesses Have Fewer Than Six Months of Cash Reserves

Roopa Ramaiya
Head of Corporate Marketing and Communications, Stenn
pr@stenn.com

Stenn, the next-gen capital platform that gives entrepreneurs freedom to grow, today released new findings highlighting where small to medium (SMB) business leaders need support.

According to data from the U.S. Chamber of Commerce, 33.2 million small businesses employ 61.6 million people, comprising 45.9% of all domestic employees as of 2023. With 20% of small businesses failing within their first year of operation, and more than 45% failing in the first five years, it’s critical for these small businesses to have the right resources, support, and access to capital quickly to stay afloat.

Key survey findings include:

Over half of SMBs (56.4%) reported having 6-18 months of cash reserves, while 21.6% said they had only 1-5 months of reserves, indicating that the nation’s largest employer by category is vulnerable to financial shocks.
Many small businesses are nearing an inflection point in their growth journey. Over 45% of respondents indicated that they expect to scale their operations within 6-18 months, while 36.8% believe they are just 1-5 months away from leveling up.
When asked what could help their businesses scale faster, 43.2% stated balancing short-term financial needs with long-term growth objectives, closely followed by the need for more market insights and customer analytics (42%) and investment in marketing, inventory, and new offerings (40.4%).

“Small businesses are the unsung heroes of the economy in the U.S. Because so many of them are built on a founder’s ingenuity, traditional lenders don’t always see their value,” said Noel Hillman, Chief Commercial Officer at Stenn. “We’re committed to providing the flexible financing that small businesses need to manage cash flow, invest in new markets, and enhance supply chain logistics. Stenn’s flexible financing options are tailored to help SMBs maintain stability and achieve sustainable growth.”

Please see the accompanying infographic here.

Methodology

The research was conducted by Opinion Matters, among a sample of 250 US-based senior decision makers (Founders, Owners, CEOs, Managing Directors and Functional Financial Leaders) in wholesale/B2B, B2C OR D2C businesses with 1-500 employees with at least $2.5 M average annual revenue and at least a year in operation. Companies should also import goods from abroad (stock/inventory/raw materials). The data was collected between August 29th and September 5th, 2024. Opinion Matters abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles.

About Stenn

Stenn is an online capital platform that gives businesses the freedom to grow. Stenn aims to make capital universally accessible to the world’s independent companies and entrepreneurs, expanding opportunities in global trade, online commerce and software as a service. With employees in Asia, the U.S., and Europe, Stenn has provided more than $20 billion in non-equity funding to customers in 74 countries with capital invested by top-tier financial institutions, including Citibank, HSBC and Goldman Sachs.