Financial vulnerability of small business owners

Authors

  • Michael S. Gutter Department of Consumer Science, University of Wisconsin-Madison
  • Tabassum Saleem Department of Consumer Science, University of Wisconsin-Madison

DOI:

https://doi.org/10.61190/fsr.v14i2.4821

Keywords:

Resource allocation, Risk tolerance, Survey of consumer finances, Small business owners, Financial vulnerability

Abstract

This study examines the financial vulnerability of small business owners using data from the 2001 Survey of Consumer Finances. Financial vulnerability is determined by the extent to which income and wealth are derived from the same source. The findings suggest that business owners face unique financial vulnerability because of their reliance on the business as both a source of income and wealth. Business owners may have insufficient diversification when relying on the business as an asset to fund retirement. Among business owners, farmers are the most vulnerable; their proportions of total income and total portfolio attributable to the business are higher than other business types.

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Published

2005-06-30

Issue

Vol. 14 No. 2 (2005): FSR Summer 2005

Section

New Original Submission

License

Copyright (c) 2005 Academy of Financial Services

Creative Commons License

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Author(s) retain copyright and grant the Journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows to share the work with an acknowledgment of the work's authorship and initial publication in this Journal.

This license allows the author to remix, tweak, and build upon the original work non-commercially. The new work(s) must be non-commercial and acknowledge the original work.

How to Cite

Financial vulnerability of small business owners. (2005). Financial Services Review, 14(2), 133-147. https://doi.org/10.61190/fsr.v14i2.4821