U.S. Bank survey results show owners fear business will be hurt by
workforce shortages
MINNEAPOLIS--(BUSINESS WIRE)--Oct. 3, 2017--
More than three-quarters of Asian-American small-business owners say
they are struggling to find quality employees, and they worry that will
impede their business, according to a new survey by U.S. Bank.
“Asian-American entrepreneurs are more pessimistic than the average
small business owner, and that pessimism is bleeding over into a lower
level of satisfaction with being an entrepreneur,” said Ross Carey, head
of business banking at U.S. Bank.
The findings are part of U.S. Bank’s annual small-business survey, which
sought responses from 200 Asian-American business owners in the 25
states where the bank has branches.
Because of high-quality worker shortages, 77 percent of respondents said
they are doing more on the job training, increasing wages, curbing
company growth expectations and lowering job qualifications.
Three-quarters also report they are worried that the workforce shortage
will hurt the long-term future of their companies (compared to 66
percent of all owners).
Only about a third of the Asian-American owners said they were satisfied
with the amount of compensation that they derive from their business,
although nearly half (48 percent) predict an increase in their revenues
over the next year.
“Business owners who are dissatisfied with the wealth they are earning
from their company have a knowledgeable resource at their fingertips
just by reaching out to their banker. Small-business bankers can be a
trusted advisor for owners to help improve cash flow and build up the
company so that it’s a joy to do business,” Ann Liu, regional sales
manager for U.S. Bank in Los Angeles, said.
Other findings from the U.S. Bank survey of Asian-American business
owners:
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Economic uncertainty was the single most significant challenge to
their business, followed by taxes and poor sales.
-
45 percent believe that international trade policy will be more
restrictive under the current presidential administration but most (54
percent) didn’t believe it would affect their business.
-
Over half (55 percent) of business owners do not plan to expand
through capital expenditures in the next year.
-
About half (52 percent) of owners are actively trying to engage
millennial customers.
-
Nearly a fifth (18 percent) of owners say their business bank does not
offer access to networks of other small business owners—which they
wish they had—a wish-list item well above the national average.
This survey is part of a wider effort by U.S. Bank to support
Asian-American business owners by providing them with information,
tools, advice and small-business services that are tailored to their
needs. The bank has a strong presence in areas including Los Angeles,
San Francisco, Seattle and Chicago where there are large Chinese and
other Asian populations.
U.S. Bank places a priority on providing the financial products and
services small businesses need to help them navigate important financial
milestones. They include deposit accounts and cash flow management, card
payment and acceptance tools, equipment leasing and wealth management.
U.S. Bank was the
third largest lender of SBA loans in the country in fiscal 2016
with $838 million in volume.
The survey of 3,200 small business owners within U.S. Bank’s 25-state
national footprint was conducted in January and February 2017, including
an oversample of 200 Asian business owners. Respondents all had less
than $10 million in annual revenue, with half under $200,000. Download a summary
of survey results here.
About U.S. Bank
Minneapolis-based U.S. Bancorp (NYSE: USB), with $464 billion in assets
as of June 30, 2017, is the parent company of U.S. Bank National
Association, the fifth largest commercial bank in the United States. The
Company operates 3,088 banking offices in 25 states and 4,826 ATMs and
provides a comprehensive line of banking, investment, mortgage, trust
and payment services products to consumers, businesses and institutions.
Visit U.S. Bancorp on the web at www.usbank.com.
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Source: U.S. Bank
U.S. Bank
Shera Dalin, 314-335-3335
shera.dalin@usbank.com
@usbank_news