MassMutual Enterprise Proprietor Views Examine: Lagging Lengthy-Time period Planning Impacts for Small Companies | Enterprise


Nonetheless recovering from pandemic-induced challenges, U.S. small companies are failing to plan for the long run, in accordance with new analysis from Massachusetts Mutual Life Insurance coverage Firm’s ( MassMutual ) Enterprise Proprietor Views Examine. Of the small companies that survived the pandemic, most aren’t ready for an additional monetary shock: Solely 36% are experiencing development and nearly half (46%) report lower-than-expected income.

That is the fourth time that MassMutual has carried out this survey (see outcomes from 2018, 2015 and 2011 ).

“As we have already seen in 2022, many enterprise house owners proceed to show resilience and dedication to their clients amidst evolving headwinds and uncertainty,“ mentioned Mike Fanning, head of MassMutual US. “There isn’t any larger solution to rebuild and preserve a small enterprise’ well being than by planning for its monetary future and understanding its relation to the house owners’ private monetary objectives.”

Workforce points are probably the most outstanding amongst challenges dealing with small companies. 69% of these surveyed indicated that retaining staff loyal to the enterprise is essential; nevertheless, many are lacking the chance of in search of skilled recommendation.

  • Many small companies had been pressured to put off employees or cut back hours (19%) or rent new staff (19%)
  • 43% are dealing with workforce and staffing points, particularly in sustaining worker productiveness and morale, and hiring in a aggressive market
  • 39% are dealing with provide chain points, akin to rising prices and elevated delivery time
  • To compete within the labor market, small enterprise house owners have supplied elevated wages (42%), extra flexibility (41%), and bonuses (36%) to rent and retain staff

Funding in enterprise house owners’ future wants is lagging however 3 in 5 would exit the enterprise sooner if their future monetary safety was assured. In terms of retirement financial savings, solely 46% have invested in a certified retirement financial savings plan and 54% really feel they need to be saving much more. About half (44%) have had a enterprise evaluation carried out within the final three years; nevertheless, most have deprioritized three vital valuation elements:

  • Figuring out if the enterprise shall be a adequate element of their retirement revenue plans (26%)
  • Creating an equitable distribution of the proprietor’s belongings as a part of an property plan (21%)
  • Establishing a buy-sell settlement between companions (20%) – which solely 32% of these surveyed have in place

Small enterprise house owners hold enterprise and private monetary planning separate however choose one advisor who can do all of it. Most small enterprise house owners (83%) say their enterprise and private finance wellbeing are intertwined, but 80% in the end choose to separate their enterprise and private monetary planning. On the identical time, 86% worth monetary professionals who can deal with each private and enterprise planning and 70% choose to work with a single advisor on their planning points.

“The reply to many questions within the planning realm for enterprise house owners is coordination between their enterprise and private aspirations,” mentioned Fanning. “We are able to all take classes discovered from world occasions and apply them to strengthen our monetary foundations for future uncertainties.”

View the full 2022 Business Owner Perspectives Study and go to MassMutual’s website for added monetary assets and steerage for enterprise house owners.


MassMutual’s 2022 Enterprise Proprietor Views Examine was carried out by LRW by way of a 20-minute on-line survey of 800 U.S. enterprise house owners in December of 2021. LRW chosen U.S. enterprise house owners and companions, excluding sole proprietorships the place proprietor is sole worker, from companies with fewer than 500 staff and not more than 20% over 100 staff. Every has been in enterprise a number of years and has a 2020 gross sales income of no less than $250,000 or extra, with not more than 10% in enterprise from 1-3 years. The sampling margin of error for this examine is +/– 2.7% proportion factors when wanting on the outcomes for the entire small enterprise inhabitants, primarily based on a U.S. Small Enterprise Employer inhabitants of 5.8 million. These are on the 90% confidence degree.

About MassMutual

MassMutual is a number one mutual life insurance coverage firm that’s run for the advantage of its members and taking part policyowners. Based in 1851, the corporate has been frequently guided by one constant goal: we assist individuals safe their future and shield those they love. With a concentrate on delivering long-term worth, MassMutual presents a variety of safety, accumulation, wealth administration and retirement services. For extra info, go to


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Media: Paula Tremblay, MassMutual,[email protected]



SOURCE: MassMutual

Copyright Enterprise Wire 2022.

PUB: 05/02/2022 09:00 AM/DISC: 05/02/2022 09:02 AM

Copyright Enterprise Wire 2022.