It’s not just you.
If you work hard at serving patients and selling eyewear but still can’t seem to get ahead, you’re not alone.
Small businesses in general are not accumulating much cash after they pay their expenses, Bloomberg reports.
In a study by JPMorgan, small firms reported having 27 days of cash reserves. That’s defined as “money to cover expenses if inflows suddenly stopped.”
With such small buffers, it can be difficult to expand, or even survive, Bloomberg notes.
The news outlet explains that, according to the survey, daily income barely outpaces expenditures for small businesses as a whole — the average difference is just $7 a day. According to a chart with the article, income exceeds expenditures by an average of $21 a day in health care services and $4 a day in retail.
Diana Farrell, CEO of the JPMorgan Chase Institute, tells Bloomberg: “The small business sector is less full of future Googles and Ubers and tons and tons of very small operators living month to month.”
Advertisement
Read more at Bloomberg
