CHARLOTTE, N.C. — Small businesses are the backbone of cities around the country, but when it comes to staying afloat, attracting customers is just half the battle.
According to a LendingTree analysis, roughly one in five businesses fail within the first year.
Scott Stearsman, head of small business banking at Truist, said inflation, rising costs and the economy are partly to blame.
“So, they're having to re-imagine their own business models at the same time as they’re running the business… to retain those employees and talent," Stearsman said. "They've also had to increase their prices.”
Truist shared the results of their recent survey, which outlines some of the challenges and efforts by businesses to survive.
It shows nearly 70% of owners surveyed increased wages, time off, or offered remote work in the past year.
One of the top investments for Charlotte-area businesses was employee training and skill set development.
Heath Campbell, who leads the Greater Charlotte Metrolina region of Truist, said creating employee recognition programs, flexible childcare, and even personality profiles, when possible, can also help.
“Who is your best employee?," Campbell asked. "Let's do a personality profile to see what traits and characteristics make them successful in this company.”
Despite ongoing challenges, there is some optimism. More than half of survey respondents said they believe conditions have improved compared to last year.
The desire to start a business also remains strong, according to Stearsman.
"We're actually seeing more workers move into the entrepreneurship and start their own small businesses," Stearsman said. "It's the desire to follow their purpose.”
To view additional survey findings, including findings on work-life balance, click here.
Contact Kayland Hagwood at khagwood@wcnc.com and follow her on Facebook, Twitter and Instagram.
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