Small Business Owners Rely on Financial Guidance
As they navigate difficult and unstable business environments, small business owners are faced with growing their companies, managing risk, and attracting and retaining employees, all while safeguarding their own long-term financial horizon.
As a result, many say they need, and value, the help from a financial professional in understanding retirement planning.
New findings from Equitable, along with small business group the SCORE Association, show that eight in 10 small business owners appreciate the assistance they receive from advisors, from business guidance to decisionmaking.
The study broke down small business owners by groups and found that small Millennial employers were twice as likely to value guidance from a financial professional compared to businesses owned by Gen Xers and Baby Boomers. Similarly, small businesses in the early stages of growth—either between two to five years—were 50% more likely to work with advisors compared to well-established or older companies.
“Running a successful small business is challenging, and our research shows that owners feel more confident when they have an experienced financial professional by their side,” said Jim Mellin, head of Advice and Wealth Management for Equitable Advisors.
In managing multiple decision points, small business owners can often be left feeling overwhelmed with their own retirement planning. The findings report that six in 10 small business owners have a hard time fully retiring while 63% say they’re looking for retirement planning advice. Those who work with an advisor expect to retire an average of seven years earlier—from age 70 to 63.
Small business owners who seek guidance are also twice as likely to offer comprehensive workplace benefits like retirement plans and supplemental health options like hospital indemnity, critical illness and accident insurance. This could further help them compete for talent in a competitive job market, experts say.
“Entrepreneurs often feel the weight of every decision — but they don’t have to carry it alone,” said Ed Coleman, regional vice president at SCORE. “Whether just starting out, growing a business or planning for retirement, access to the right guidance can make the difference between surviving and thriving.”
“The Advantage of Advice: How Small Business Owners Navigate Growth, Retirement and Workplace Strategies” included responses from 728 business owners or key decision makers.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
