Interpreting implications of bank deposit holds on small business cash flow.

摘要

The purpose of the correlational research was to explore if relationships existed between funds availability associated with banking deposits, near-failure events, and banker trust levels of small businesses. The focus was to identify the nature of relationships between deposit holds and five measures of business near-failure events: ability to timely pay employees, ability to timely pay vendors, ability to timely pay taxes, and ability to take advantage of profit opportunities. A secondary component of the study assessed the relationship between holds, and banker and entrepreneur trust relations. The motivation driving this research was to determine how significant deposit holds contributed to small business near-failure events by impeding productivity and stifling innovation. Using a mailed and online self-constructed, reliability, and validity tested survey instrument, data were gathered from 105 survey participants. Using Spearman's rho analysis, study results indicated no significant relationship between holds and specified near-failure events. Although results indicated a slight to moderate relationship between deposit holds and bankers trust relations with small business entrepreneurs. Only null hypothesis five referencing trust could be rejected in favor of the alternate hypothesis. The implication is as trust increased between bankers and entrepreneurs occurrences of holds tended to decrease. A concluding recommendation is small businesses must understand the importance of 'adaptability' to external conditions influencing leadership capabilities.