THE NEED
- About 20% of small businesses fail in their first two years of operation, 45% fail during the first five years, and 65% fail in the first 10 years. (U.S. Bureau of Labor Statistics)
- 82% of small businesses fail due to poor cash flow management (SCORE)
- In 2024, businesses reported a $1200 median dollar loss to scams in the marketplace; about 29% of business reported losing money when targeted by a scam. (BBB Scam Tracker Risk Report)
BBB Institute has created a Small Business Advisory Board to explore solutions to areas of greatest need for underserved and minority-owned businesses, with an emphasis on access to capital and mentorship as the most immediate barriers to growth/success. The Board will develop curriculum for locally-based BBBs to offer to small businesses in their communities.
Advisory Board members represent BBB accredited SMBs, subject matter experts, corporations, and BBBs offering innovative solutions in their markets. Members offer guidance on topics, messaging, and available resources and are experts in different areas of service in their respective industries.
SMALL BUSINESS ACCELERATOR PROGRAM
BBB Institute is working with our BBB partners to scale a small business accelerator to BBB service areas in the United States and Canada. This training program empowers local business owners to grow and sustain their existing businesses. Program participants benefit from training, mentorship, and networking with their peers.
BBB Institute will create a framework to introduce this program in communities where there is a significant need for support for entrepreneurs and small business owners. The program will be built to serve underserved enterprises such as women-owned businesses, veteran-owned businesses, and those businesses serving low-income communities.
BBB4Good
BBB Institute is leading an initiative to identify and support organizations that are doing good in their communities. BBB4Good enables purpose-driven businesses to become “BBB4Good Verified” by vetting their social good activities with BBB. This empowers consumers to choose businesses that reflect their values and allows purpose-driven businesses to stand out in the marketplace.
RESOURCES FOR SMALL BUSINESSES:
Research report: Scams and your small business. In this 2018 research project with the Council of Better Business Bureaus, we used survey data and Scam Tracker data to provide insights on scams targeting small businesses.
BBB Scam Tracker. BBB Scam Tracker prevention and reporting platform enables businesses to report scam incidents and search published reports to determine if they are being targeted.
BBB Scam Prevention Guide. Small businesses can learn more about protecting themselves from scams through this online prevention guide. The microsite contains research, articles, videos, and quizzes from the BBB that explain popular scams and the tactics that scammers use.
BBB Scam Survival Toolkit. Small businesses impacted by a data breach will learn the steps they should take to help them recover.
COMMUNITY OUTREACH
BBB Institute has created programs focused on providing education and resources to individuals and small businesses in their communities.
Fighting Financial Fraud is an annual train-the-trainer program for BBBs throughout the U.S. that provides the knowledge, tools, and data they need to offer scam education workshops to consumers and small businesses. In 2023, program participants were able to provide training to 19,341 individuals in their communities. Fighting Financial Fraud is made possible thanks to support from the FINRA Investor Education Foundation.
BBB’s Military & Veterans Initiative is a train-the-trainer program with the goal to empower military service members, military spouses, and veterans, including veteran-owned businesses to make smart financial decisions in the marketplace. This program was launched in 2024.
