Stenn, a leading provider of flexible financing solutions, has recently released new findings that shed light on the areas where small to medium businesses (SMBs) need support. According to Noel Hillman, Stenn’s chief commercial officer, small businesses are the backbone of the U.S. economy, but they often struggle to secure funding from traditional lenders due to their unique nature.
Stenn is dedicated to providing SMBs with the financial support they need to manage cash flow, expand into new markets, and improve their supply chain logistics. With tailored financing options, Stenn aims to help SMBs maintain stability and achieve sustainable growth.
Recent data from the U.S. Chamber of Commerce shows that there are 33.2 million small businesses in the U.S., employing 61.6 million people, which accounts for 45.9% of all domestic employees as of 2023. However, with 20% of small businesses failing within their first year and over 45% failing within the first five years, it is crucial for these businesses to have access to the right resources and support to stay afloat.
The survey conducted by Stenn also revealed that over half of SMBs (56.4%) have 6-18 months of cash reserves, while 21.6% have only 1-5 months of reserves. This indicates that the nation’s largest employer category is vulnerable to financial shocks.
Moreover, many small businesses are at a turning point in their growth journey, with 45% of respondents expecting to scale their operations within 6-18 months and 36.8% believing they are just 1-5 months away from leveling up. When asked about the factors that could help their businesses grow faster, 43.2% of respondents stated the need to balance short-term financial needs with long-term growth objectives. This was closely followed by the need for more market insights and customer analytics (42%) and investment in marketing, inventory, and new offerings (40.4%).
In conclusion, Stenn’s new findings highlight the challenges faced by SMBs and the importance of providing them with the necessary support and resources to thrive. With its flexible financing options, Stenn is committed to helping SMBs achieve their growth objectives and contribute to the economy’s overall success.