Here Is Why Small Businesses Aren't Prepared for Financial Downturns

Small business owners aren't prepared to withstand financial tremors, according to a new report by the JPMorgan Chase Institute, which analyzed data from 597,000 small businesses during an eight month period in 2015. The median small business could only survive for 27 days should cash stop coming into their business. Restaurants only had a 16-day cash cushion in reserve. According to Diana Farrell, CEO of the JPMorgan Chase Institute, the cash crunch makes small business owners feel vulnerable, which helps explain the recent declines in the closely-watched Small Business Optimism Index. TheStreet's Scott Gamm reports from Wall Street.