The third quarterly Private Capital Access Index, gathered by Pepperdine University’s Graziadio School of Business in partnership with Dun & Bradstreet Credibility Corp., is out! Aimed at small businesses of America, the survey reflects how optimistic business owners are about their chances to access capital, expected growth, and pinpoints difficulties they may be having. Here’s a top ten of what we learned:
- Average expected annual business growth is 6.7%.
- 32% attempted to raise capital during the last three months.
- 41% cited the need for external financing due to expansion or growth.
- Success rate of businesses acquiring bank loans is 42%.
- 60.7% expressed a need for outside financing due to expansion (including acquisitions not yet realized) or planned growth.
- 57.2% responded that they need outside financing due to fluctuations on working capital.
- 48.6% indicated a need for financing due to increased demand (already realized).
- Pessimism is rampant: 72% branded the current business environment as encumbering their ability to raise the necessary capital.
- On average, business owners expect to visit 4.8 lenders in order to get the financing they need.
- 41% of business owners had transfered personal assets to their businesses within the last three months.
Has your business experienced the same? Different? Share your thoughts with us in the comments!
[cc photo credit Robert Croma]