Guide

A Guide to Measuring Small Business Financial Health

In this guide, we include nine indicators of small business financial health with two measurement methods (survey data or observed data), as well as corresponding survey questions and suggested data points.

Wednesday, June 12, 2019
 A Guide to Measuring Small Business Financial Health

Financial service and small business resource providers are well-positioned to identify and address the financial health challenges small businesses may face in financial management, planning, and accessing capital. By measuring a small business’s financial health, organizations can better understand how small businesses are doing and their unique financial health challenges.

Small Business Financial Health

For a small business, financial health comes about when its daily systems help it build resilience and pursue opportunities.

A small business is financially healthy when it:

• Meets financial obligations

Maintains sufficient cash reserves

Maintains a comprehensive financial management system

• Plans for significant business risks

Plans for cash flow variability

Has appropriate insurance

• Has access to affordable, timely credit

Has a sustainable debt load

Has access to investment capital

Our Supporters

This report is made possible through the financial support of JPMorgan Chase & Co.

Written by

A Guide to Measuring Small Business Financial Health

Explore the trends. Discover new insights. Build stronger strategies.