#United States #Raleigh #entrepreneurs #Economic Resilience #First Citizens Wealth

Introduction

In the ever-evolving landscape of entrepreneurship, navigating challenges is part of the journey. A recent study by First Citizens Wealth, titled "Beyond Wealth," focuses on how business owners are adapting their financial strategies to overcome today's economic uncertainties. With insights drawn from a survey of 500 business owners, the report paints a picture of resilience and optimism prevailing within the entrepreneurial community.

Study Overview

Conducted in August and September 2025, the survey reveals that despite facing economic hurdles such as inflation and shifting market dynamics, business owners express high levels of steadfastness. Executive Director Marc Horgan indicates that the overwhelming sentiment among entrepreneurs is that having a business is rewarding, with 94% reporting personal fulfillment from their endeavors. This sentiment shines through even in the face of financial stress.

Innovative Strategies for Stability

The survey highlights that while many owners finance their ventures through personal savings (66%) and traditional bank loans (40%), seasoned business owners are more inclined to seek out private equity and venture capital, showing a progressive approach to growth. Approximately 38% of experienced entrepreneurs leverage these financial avenues compared to just 18% of new business owners. This strategic shift not only assists in operational funding but also promotes long-term expansion.

Experienced entrepreneurs are taking significant steps to secure the future of their businesses. They tend to reinvest in their ventures at higher rates—often expanding operations or hiring new employees—contrasting with less seasoned owners. In a challenging economic environment, pricing adjustments (34%) emerge as the most common response, followed by increased marketing initiatives (23%) and alterations in vendor relationships (22%). These actions reflect adaptability and foresight among business owners as they seek to navigate complex economic challenges effectively.

The Road Ahead

As business owners contemplate the next chapter, many foresee a sale as the most likely exit strategy. Interestingly, the survey reveals that two out of five entrepreneurs plan to retire following their exit, which indicates a desire for ongoing contribution in some capacity. Moreover, financial confidence is notable, with over half (54%) expressing strong confidence in their financial standings, significantly higher than the 35% also expressing confidence among wealthy non-owners.

Financial Insights

When delving into personal and business finance, the overlap becomes evident. Many respondents share financial resources, including bank accounts and credit cards, with 94% acknowledging the fulfillment derived from ownership, outweighing the accompanying financial stress. However, this blur between personal and business finances underlines an area for potential improvement. Nerre Shuriah, a Senior Director at First Citizens Wealth, emphasizes the missed opportunity among business owners to fortify their wealth through financial partnerships. Establishing solid financial strategies early can enhance long-term stability amid entrepreneurial risks.

Wealth Management Trends

On a broader scale, the survey reveals that wealthy Americans are diversifying their wealth sources, with "stock/options in company employed with" emerging as a significant new source. Millennials, for instance, stand out as the generation mostly engaged in entrepreneurship, while Boomers lean towards traditional savings avenues.

Despite their overall financial strength, over half of wealthy Americans experience financial stress with inflation (62%) and stock market fluctuations (44%) being the leading concerns. Consequently, many are retracting on discretionary spending, particularly luxuries, showcasing a cautious approach as economic uncertainties loom.

Conclusion

The findings from First Citizens Wealth's "Beyond Wealth" study illuminate the resilience of business owners as they face a dynamically changing economic environment. Entrepreneurs demonstrate an admirable willingness to adapt, finding innovative ways to solidify their business and personal financial futures. Insights from this research encourage a collaborative approach to wealth management, allowing individuals to build lasting legacies while navigating the complexities of business ownership. The path forward may require flexibility and strategic planning, but the entrepreneurial spirit remains unyielded.

For more insights from the Beyond Wealth study, visit First Citizens Wealth's website.