- Less than three percent use grants, government loans or
crowd-funding
- Anxiety over owner’s ability to save for retirement
- More than half believe U.S. economy is worsening
Company Website:
http://www3.samsclub.com/newsroom
BENTONVILLE, Ark. -- (Business Wire)
As new and alternative funding sources target small businesses and
increasingly penetrate the U.S. market, less than three percent of U.S.
microbusiness owners report using government loans (2.7%), small
business loans (2.4%) or crowd-funding (1.9%) to fund their business,
according to the Sam’s Club/Gallup Microbusiness Tracker.
More than 60 percent of new microbusiness owners rely on non-retirement,
personal savings as the lead source of funding for their businesses,
four in ten owners (43.4%) use credit cards and one in five (22%) use
money from friends and family. The quarterly survey of 1,004 U.S. firms
with five or fewer workers also found U.S. microbusinesses started in
the past year are 30 percent more likely to use personal savings (79.1%)
to maintain their business than mature businesses (50.5%).
In the most recent Sam’s
Club/Gallup Microbusiness Tracker, conducted May 8-26, 2014,
microbusiness owners reported that in the past 12 months, two in five
microbusiness owners (40.4%) have had to dip into personal or retirement
savings to improve their bottom line, while 42 percent have increased
the price of their goods and services.
Confidence in Business, but Not the Economy
The Sam’s Club/Gallup Microbusiness Tracker explores the emotional and
economic concerns of the country’s smallest businesses that employ one
out of every ten Americans. The survey reveals that more than half
(54.9%) of owners foresee the economy to worsen, yet 70 percent are
energized by their work and six in ten (65.2%) are confident they have
the talent to grow their company in the future. Confidence is also
reflected in their perception of the future and their impact on the
community.
Download the Sam’s
Club/Gallup Microbusiness Tracker Report for further insights
into microbusiness owners’ views on financing, operations and the future
in new (0-3 years) versus mature (10+ years) segments. As a group, 71
percent are confident in their company’s future and 67 percent feel they
have a positive impact on their community.
“Despite concerns over worsening economic conditions, U.S. microbusiness
owners are confident in nearly every dimension of work and life. This
vital segment of the U.S. economy is passionate about their choice to
pursue a small business venture and unwavering in their commitment to
serving consumers with an intense focus on quality no matter how many
other factors or challenges they may face,” said Rosalind Brewer,
president and CEO of Sam’s Club.
High Job Satisfaction Driving Vacation Time
During the country’s peak season for travel and downtime, U.S.
microbusiness owners emphatically responded they are taking time off,
with 83 percent planning a vacation this year. East Coast residents
(25%) were most likely to opt out of a vacation. In contrast, only 12
percent of Midwestern microbusiness owners and 15 percent of Southern
microbusiness owners said they are skipping vacations.
Road trips within 500 miles of home are most microbusiness owners’
vacation of choice (46%), providing possibilities of staying connected
to business through wireless technology. With a considerable 49 percent
of microbusiness owners strongly agreeing they have the technology they
need to run the key functions of their companies, there is increased
ability to conduct necessary tasks while taking time to recharge.
While road trips are by far the most popular vacation type for this
group, 19 percent plan to fly to a U.S. destination for time away. Less
popular vacations among microbusiness owners include flying outside the
country (14%) or taking a cruise (3%).
Planning for the Future: Retirement Savings and Health Benefits
One of the few areas of emerging anxiety across the board for
microbusiness owners is a concern about long-term investments with 43
percent indicating they are worried about retirement.
The survey revealed other surprising findings about putting money away
for the future:
-
The more you make the more you worry. Nearly half of microbusiness
owners generating $50,000 or more in revenue (44%) are anxious about
saving for retirement, compared to those making less than $10,000
(42%).
-
Having a nest egg weighs more heavily on female microbusiness owners:
47 percent of women, compared to 41 percent of men, are concerned
about retirement savings.
-
East Coasters are the most nervous about the saving for the future
(49%) while Midwest microbusiness owners are the least apprehensive
(39%).
As concern for retirement savings is consistent with past reporting,
concern for healthcare benefits has decreased by more than 10 percent.
Only a third of U.S. microbusiness owners today are concerned about
worker healthcare benefits today (36%) compared to Sam’s Club/Gallup
Microbusiness Tracker reporting from December 2013 (48%) and April 2014
(41%).
For further information please view Gallup’s article Almost
One in Five Microbusiness Owners Took No Vacation in the Past Year
and download the Sam’s
Club/Gallup Microbusiness Tracker July 2014 Report at
SamsClub.com/newsroom.
About The Sam’s Club/Gallup Microbusiness Tracker
The Sam’s Club/Gallup Microbusiness Tracker is a nationally
representative survey that regularly reports on U.S. businesses with
five or fewer workers, a key driver of U.S. economic growth. The tracker
provides valuable insight into the mood and mind of microbusiness owners
for decision makers and influencers in government and commerce by
highlighting the unique concerns and challenges of microbusinesses along
their path from startup to maturity. To learn more about the Sam’s
Club/Gallup Microbusiness Tracker, visit SamsClub.com/Newsroom
or Gallup.com.
About Gallup
Gallup delivers forward-thinking research, analytics, and advice to help
leaders solve their most pressing problems. Combining more than 75 years
of experience with its global reach, Gallup knows more about the
attitudes and behaviors of the world's constituents, employees, and
customers than any other organization.
About Sam’s Club
Sam’s Club®, a division of Wal-Mart Stores, Inc. (NYSE: WMT),
is a leading membership warehouse club offering superior products,
savings and services to millions of members in 640 clubs in the U.S. and
Puerto Rico. To learn more about Sam’s Club, visit the Sam’s
Club Newsroom, shop at SamsClub.com,
and interact with Sam’s Club on Twitter and Facebook.
Contacts:
Sam’s Club Media Relations
Carrie Foster Moore, 1-800-331-0085
SamsClub.com/newsroom
Source: Sam’s Club
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