Small and medium businesses in California are growing, with expectations to hire and the need for financial aid due to growth both above the national average. But despite their plans to grow and hire, California small businesses are feeling more restricted than the rest of the nation: 59 percent of California small businesses surveyed feel their growth opportunities are restricted, compared to only 53 percent nationally, and 49 percent feel their ability to hire is restricted, compared to only 46 percent nationally, according to the Private Capital Access Index* by Pepperdine University and Dun & Bradstreet Credibility Corp.
Why do California small businesses feel so restricted? Part of the answer is a lack of access to capital. Only one-third of the businesses who apply for a small business loan in California actually receive one, which is a 10 percent lower success rate than the rest of the nation. This isn’t the best news, considering in Q4 2014, one-third of California small businesses had to rely on their personal assets to fund their businesses needs. With plans to hire and grow, California small businesses need access to capital, or they may have to rely on their personal assets even more in the months to come.
Visit Access to Capital to learn more about finding funding options and resources for small businesses.
Learn more about the state of California small business below: