3 min read By, David Stahl, Head of Business Banking Starting a business is one of the most exciting—and challenging—decisions a person can make. In recent years, Americans have embraced entrepreneurship in record numbers. In fact, the U.S. Chamber of Commerce reports that over 5.5 million new business applications were filed in 2023 alone—roughly 14,000 per day, nearly double the number from just a few years prior. So, what’s driving this wave of entrepreneurship? The top 5 motivators we see include: Pursuing a personal passion or area of expertise Seeking financial independence and long-term wealth The desire to be your own boss Flexibility to shape your schedule and lifestyle A deep-rooted drive to build or create something of value While the drive to start a business is strong, the path is not without risk. According to the Bureau of Labor Statistics, around 1 in 5 businesses close within the first year—and nearly half will not make it past five years. At Hillcrest Bank, it’s our mission to help entrepreneurs at every stage of the business lifecycle. We’ve seen firsthand that early planning, strategic banking relationships, and access to the right financial tools are key to building a resilient and successful business Common Challenge: Undercapitalization One of the leading causes of early business failure is undercapitalization—starting or operating without sufficient access to capital. Many entrepreneurs start their business by “bootstrapping”: using personal savings, credit cards, or informal loans. While this can work in the short term, it may not provide the stability or flexibility needed for sustained growth. That’s why establishing a banking relationship early in your journey is so important. Beyond just opening a checking account or getting a debit card, a right bank partner can help you set up secure systems to collect payments from customers and manage payments to vendors and supplies. Not to mention, establish a financial footprint that supports future borrowing. What to Look for in a Banking Partner Not all banks are equipped to meet the specific needs of small businesses. Partnering with a trusted bank can help you and your business navigate the capital needs and challenges your business will face. Partnership is not always saying “yes”, but taking the time to really understand your business needs and finding realistic, sustainable solutions together. As you evaluate potential partners, look for one that: Understands your operating cycle and business model Proactively checks in and offers advice—not just transactions Has experience with a wide range of financial products, including SBA loans, equipment financing, and working capital lines of credit Is connected with community resources, such as CDFIs (Community Development Financial Institutions), which can offer flexible financing and support for small businesses At Hillcrest Bank, we are proud to be a Preferred SBA Lender, helping business owners navigate the complexity that often comes with the SBA financing programs. Additionally, our experienced bankers specialize in helping businesses secure capital—whether it’s to launch, expand, or simply smooth out the ups and downs of cash flow. The Bottom Line Starting strong is about more than just passion—it’s about preparation, partnerships, and smart financial decisions. A good banking partner isn’t just someone who opens an account; they’re someone who helps you plan ahead, solve problems, and find sustainable solutions when challenges arise. Stay tuned in our Knowledge Center for more business insights, coming soon.
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