Dun & Bradstreet said the latest results from a survey of 10,637 privately held businesses indicated that small businesses continue to face major challenges in accessing the capital needed to grow. Despite these challenges, small businesses are much more optimistic about the economic forecast than larger companies and are more likely to hire in the coming months. The results come from the State of Small Business Report, a survey conducted by the Pepperdine Private Capital Markets Project in cooperation with Dun & Bradstreet.
The following are among the report's key findings:
Of those respondents that tried to raise capital within the previous 12 months, 35% applied for bank loans and only 50% of those that applied were successful (whereas 16% of those trying to raise capital looked to friends and family, with a success rate of 79%);
While business owners have a negative outlook on general business conditions, small business owners indicate that they are more likely to hire additional staff in the next six months;
Small business owners cited access to capital among the top reasons preventing small business owners from hiring new employees, 22% cited access to capital.
"We are proud to facilitate one of the largest surveys of small businesses ever conducted in the U.S. by offering the Pepperdine researchers access to the Dun & Bradstreet Credibility Corp.'s vast database of small businesses," said Jeffrey Stibel, chairman & CEO, Dun & Bradstreet. "These results make clear that small businesses are poised and ready to jumpstart this country's economic engine, but are restrained by numerous obstacles accessing the capital that is so critical to growing these companies."
"The Pepperdine Private Capital Markets Project State of Small Business Report gives capital providers and policymakers a unique look at how small businesses are faring. A comprehensive solution to our economic crisis must include input from small businesses as well as members of the private capital community," said Dr. John Paglia, who directs the Pepperdine Private Capital Markets Project and is an associate professor of finance at Pepperdine University's Graziadio School of Business and Management.
NOTE: The above is a summary findings from a report on Small Businesses as published during November 2011.
Wally Newton is the President and Chief Financial Officer for Prism Financial. He also consults with Landscape Supply, Inc. and other independent businesses. Wally writes articles for the "Landscape Supply Connections Newsletter."
