In a constantly shifting business environment, American small-business owners face complex decisions on how to grow their business, manage risk, attract and retain talent, and secure their financial future.
New research from Equitable, a financial services organization, shows that 83% of small-business owners consider it important to work with a financial professional for business guidance and decision making. This underscores the interconnected nature of professional support, where trust in one strategic advisor often leads to valuing a broader network, Equitable said.
Small businesses represent 99.9% of all U.S. businesses and employ nearly half of the private-sector workforce, some 59 million people, according to the Office of Advocacy at the Small Business Administration.
“Those who value advice are more resilient, grow their business faster, retire earlier and build stronger teams compared to small business owners without that support,” James Mellin, head of advice and wealth management for Equitable Advisors, said in a statement. “The advisor relationship is not just helpful — it’s often the catalyst for sustained success.”
The research findings were based on a survey conducted in June and July by SCORE Association among 728 business owners or key decisions makers, drawn from its client base and supplemented by a small-business owner survey panel.
The study found that millennial small-business owners are twice as likely as their Gen X and baby boomer counterparts to seek out financial professionals. Further, small businesses in operation between two and five years are 50% more likely to engage strategic advisors than those that have been operating for more than 20 years.
Even so, Equitable said, well-established business owners can still benefit from working with a financial professional, especially as they align personal retirement goals with business transition plans.
Six in 10 small-business owners surveyed said they find it difficult to fully retire, even though 42% started their business to eventually fund their retirement. As a result, 63% are looking for retirement planning advice.
Those who work with a financial professional expect to retire at 63, while those without professional guidance expect to do so at 70, strongly suggesting that expert advice can increase owners’ confidence and accelerate their retirement timeline.
Fifty-eight percent of survey respondents said they are either sticking with their current growth plans or waiting to make changes. Those who are accelerating their growth or expansion strategies place significantly greater value on working with financial professionals, the findings showed.
Small-business owners who work with a financial professional are three times likelier than those without one to hire new workers and five times more likely to fast-track employee retention strategies.
“Entrepreneurs often feel the weight of every decision — but they don’t have to carry it alone,” Ed Coleman, regional vice president at SCORE, said in the statement. “Whether just starting out, growing a business or planning for retirement, access to the right guidance can make the difference between surviving and thriving.”
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