Health Insurance and New Regulations Cited Among Top Concerns

The number one and two issues facing small and mid-sized companies are “achieving revenue or sales growth” and “cash flow issues,” followed closely by "insurance and other benefits."
 
In a new Greenwich Associates Market Pulse Study, small and mid-sized businesses were asked to identify the top issues facing their businesses.  Almost 40% of mid-sized companies and approximately one quarter of small businesses rank concerns about health insurance and other employee benefits among the top issues facing their businesses.
 
Twenty-four percent of small businesses included health insurance and other employee benefits on that list, including 14% naming these items as their number-one concern and 20% ranking them second. Thirty-eight percent of mid-sized companies included health insurance and employee benefits among their top concerns, including 12% naming these concerns as their top priority and 26% ranking them second.
 
“New regulations are also a significant concern for these businesses,” says Greenwich Associates consultant Duncan Banfield. “One in five small businesses and one in four mid-sized companies name new regulations as one of the top three issues facing their businesses.”
 
Advice to Banks and Companies
These findings have important implications for banks that compete in today’s environment of ample credit:  Because efficient cash flow management has become a top-of-mind issue among companies in both groups, helping clients address cash flow can be a meaningful way to provide differentiated service. Bank relationship managers and key points of contact should engage important customers to discuss how they could optimize their payable / receivable cycles.
 
Only a quarter of small businesses and half of mid-sized companies say they were approached by their banks about addressing their cash flow situation in the past six months. “For these businesses, these findings demonstrate that many peers are being proactively contacted by their banks with ideas about how to improve cash management,” says Duncan Banfield. “If you are not getting this type of advice, ask for it.”