2020 Financial Confidence Survey Report

Key Takeaways

• 70% of women business owners relied on their primary bank to some degree for financial guidance and insights.
• 72% of women business owners are still moderately to highly optimistic that they will reach their business goals this year.

Plans for growth

Since women have entered the business world, they’ve faced every adversity from gender bias to wage gaps. Time and time again, women have overcome setbacks and pushed forward in the business world.

In the beginning of 2020, women’s representation in leadership roles was slowly trending upward, moving from 17% to 21% in the C-suite.² As the year progressed, this momentum seemed to halt, with less than half of our respondents remaining optimistic about reaching their business goals over the next year. A majority of women attribute this to COVID-19 and the economy.

Though fervent optimism is trending down, about 72% of women are still moderately to highly optimistic that they will reach their business goals this year.

Uncertainty in financial future

The lack of confidence has translated to their feelings toward the future of their personal and business financial wellness. While only around 40% of women reported feeling very confident in their financial future, over half reported feeling somewhat to very optimistic.

Despite being lower than previous years, overall we are still seeing that women remain resilient as they look to the future. Taking steps to get access to additional support and opportunities is a great way for women to protect the future of their businesses. Becoming a certified Women-Owned Small Business can secure insights and chances to help expand business possibilities. For businesses that are facing economic setbacks, getting the special certification, Economically Disadvantaged Woman Owned Small Business (EDWOSB) can help open doors to the future. Visit SBA.gov to learn more.

COVID-19 outcomes

The pandemic has presented new challenges and opportunities for businesses. Unfortunately, about 59% of those polled have experienced some negative impacts on their business as a result of COVID-19. Things like shutdowns, layoffs, and a reduction of buying power in their customer base have all contributed to an overall downturn.

However, about 15% of women reported slight to substantial positive impacts on their business, citing things like increased revenue, work from home productivity, and increased operational efficiencies.

Financial guidance still key

About half of women in business report that their primary bank proactively reached out regarding the pandemic. Roughly 70% of women relied on their primary bank to some degree for financial guidance and insights.

Interestingly, the women we spoke to under 35 are more likely to get help from their primary bank, while women over 50 are less likely to do so. About 32% of all women in business report relying heavily on their primary bank for financial advice during the pandemic. Key4Women Certified Advisors are uniquely qualified to help women overcome challenges to reach their goals. We are always on standby to help get you where you want to be, so visit your local KeyBank branch or contact your banker to get started.

Innovation inspires growth

True to their strategic nature, women in business are finding new and creative ways to adapt to today’s market. When asked how they plan to rebuild or grow revenues, 22% stated by offering new products or services. Another 17% proposed enhancing employee skills, followed closely by obtaining additional capital.

While outlooks aren’t as positive as they’ve been in past years, women continue to rise to the challenge with new solutions. Pivoting business trajectories to meet customers’ new and immediate needs will help supplement depleting revenue streams and attract new customers, while positioning the business as a leader. Business owners should consider offering a new product or service, expanding employee training and education, or surveying current customers about any unmet needs.

Looking to the future

Key4Women recently completed an advice series with women leaders about how they’ve managed the challenges they’ve faced in 2020.

They talked to us about the importance of utilizing technology to maintain close contact with suppliers, employees, and customers in the age of remote work. Adaptability is another key component of business, as women find themselves adjusting payment schedules, offering new solutions, innovating new delivery methods, and implementing changes that help them better serve customers.

Along with prioritizing virtual communication, women shared that maintaining an up-to-date, relevant digital presence helps their customers stay in the loop on important business updates. Things like updating business hours, service offerings, and other company news ensures customers are always privy to the most accurate information.

Key4Women is here as a resource to help you make connections, find solutions, and achieve your goals. Contact your local Key4Women Certified Advisor to talk about your needs by scheduling an appointment at your nearby KeyBank branch or by contacting your banker directly.

So, what’s next?

• Reach out to your banker about what the right next steps are for you.
• Build your network and professional relationships to gain more insights into how your peers are handling current challenges.
• Look for collaborative opportunities with other local businesses or connections in your network.
• Partner with other businesses to offer more comprehensive solutions and create operational efficiencies.
• Join organizations that can provide you with additional resources and support.
• Take advantage of opportunities and aid from national organizations, like the SBA’s Office of Women Business Owners and NAWBO and local groups such as Chambers of Commerce.

Key4Women: Empowering women in business

Established in 2005, Key4Women provides a network and platform for women in business to:

• Make meaningful connections.
• Get involved with our local networking events.
• Tap into capital to build and grow their businesses.
• Get customized financial services and advice from a local Key4Women certified advisor, including integrated wealth management.
• Access intellectual resources and articles on a variety of topics.
• Connect with us on LinkedIn, Twitter, and Facebook.

For more information on the benefits of Key4Women^® and to join, visit Key.com/women.

Meet with your banker to review your business plan and strategize for the future of your business and finances.