Small Businesses Want to Grow, But Challenged by Access to Funding
Privately owned businesses of all sizes are optimistic about the future. According to the 2014 Private Capital Markets Project Survey Report from Pepperdine University, 65 percent of privately owned businesses believe more growth opportunities will be available over the next 12 months.
Hiring plans are also up, with more than half of responding businesses planning to hire. Among the 53 percent who plan to add employees next year, 57 percent will look for workers will sales and marketing experience, 45 percent are in need of skilled labor and 36 percent want customer service or general service positions filled.
Although many businesses are making plans to grow, small enterprises are particularly challenged by a lack of resources. While 87 percent said they hope to enact strategies for growth, only 46 percent have the necessary money and staff to initiate the plans. On the other hand, 66 percent of large enterprises said their resources are adequate.
“This low interest rate environment makes expansion very affordable for those firms that qualify for these loans,” said Dr. Craig R. Everett, director of the Pepperdine Private Capital Markets Project. “Unfortunately, getting access to these funds remains much more challenging for small businesses than it is for the middle market.”
Pepperdine found that the loan success rate of all businesses in 2013 was 69 percent, which is down from 78 percent in 2012. Small businesses may have been particularly affected. According to the survey, 18 percent said they were concerned about access to capital compared to only 14 percent of large businesses.
Although banks can be an unreliable source of funding, a small business lender offer service particular to the needs of lower revenue enterprises. With simple applications and fast approvals, National Funding provides a hassle-free option for small business owners.