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In this session moderated by Desiree Patno, CEO & President of NAWRB, panelists Michelle Hollis, Director, 6th Street Consulting; Laura Hartsgrove Baker, Sales Director, Herbert H. Landy’s Insurance Agency; and John Moon, District Manager, Community Development, Federal Reserve Bank of San Francisco gave their unique insights into the four main pillars of NAWRB’s Small Business Sustainability Care Package, including: cybersecurity, insurance with crime prevention and employee dishonesty riders, vetting financial institutions, and payroll alert/assistance.
Cybersecurity
Michelle Hollis started the conversation of cybersecurity, sharing that consumers and small businesses can protect their resources and data by utilizing their common sense. She recommends that you have security on your phone when using applications and social media, and installing a mail encryption on your business emails.
Taking these simple measures will protect data from being pulled from your phone without your knowledge and keep your information confidential.
Insurance with Crime Prevention and Employee Dishonesty Riders
Laura Hartsgrove Baker shared her knowledge of various insurance options available to small businesses, from general professional liability to crime prevention measures. She explains that instances of employee dishonesty are linked to cybersecurity because they involve a data breech.
She advises that small business owners consult an insurance agent who can help them have sufficient coverage for their needs. If your local agent is not well-versed in policies such as crime prevention, then ask them to find the information you need. It is important to remember that there are many resources available to you.
State of Small Business and Performance
John Moon shared data on the current status of small businesses in the United States. The Federal Reserve Bank sets interest rates for monetary policy and oversees financial institutions. Moon reminds the audience that small businesses are the backbone of the economy, which is why we should help them be sustainable.
In data from 2016, Moon shared that small businesses performed weaker in 2016 than in the previous year, in terms of profitability, revenue change and employment change. Regarding small business risk, which looks specifically at profitability, low credit risk and uses of retained earnings, Moon states that one in three small businesses are at risk; meanwhile, 30 percent are declared healthy.
Small businesses are statistically less successful in terms of access to credit. The reasons that small banks are denied access include weak business performance, insufficient collateral, low credit score, too much debt already and insufficient credit history. Many small businesses, about 87 percent, rely on personal credit for financing.
Despite these struggles, small businesses are optimistic about their future, and Moon shares resources and technical assistance at their disposal. These include non-bank lenders such as Community Development Financial Institutions (CDFIs), the U.S. Small Business Association and other governmental sources. This session is just one example of the expert panels we have had that are giving invaluable content to this event.