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Low Savings and Cash Flow Threaten US Microbusinesses, Study Says

A new Corporation for Enterprise Development (CFED) study, supported by MasterCard Center for Inclusive Growth, indicates that more than half of US microbusinesses, “the backbone of our national economy,” are at risk due little savings and issues with cash flow, according to a CFED release.

A new Corporation for Enterprise Development (CFED) study, supported by MasterCard Center for Inclusive Growth, indicates that more than half of US microbusinesses, “the backbone of our national economy,” are at risk due little savings and issues with cash flow, according to a CFED release.

The study, “In Search of Solid Ground: Understanding the Financial Vulnerabilities of Microbusiness Owners,” is one of the first to closely examine how microbusiness owners manage their finances. It proposes that these owners fuel their companies’ growth by improving their financial management and access to affordable financial tools, raising questions about the role nonprofits, FIs, and policymakers have in propelling success.

“Without the resources offered by financial institutions, many of these businesses will continue to face real hardship,” Jay Singer, group head, U.S. commercial products at MasterCard, said in the release.

For more on the results of this CFED study and how microbusinesses can better manage their finances, read the full report here.

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