Texas small businesses are optimistic in their plans for growth, with 58 percent of businesses planning to hire in the coming months, and 52 percent in need of financing for planned growth, according to the most recent Private Capital Access Index* from Pepperdine University and Dun & Bradstreet Credibility Corp. The outlook for getting a loan, though, is not quite so bright. Only 37 percent of the Texas small businesses surveyed that applied for a loan in Q1 2015 received one, compared to 41 percent nationally. Based off those numbers, it’s no surprise that Texas small businesses are feeling more restricted than the rest of the country. Over half of Texas small businesses surveyed feel their growth opportunities are restricted and 50 percent feel their ability to hire is restricted, compared to only 46 percent nationally.
A lack of loans could hinder the growth of small business, and could mean dipping into personal assets. In Q4 2014, one-third of Texas small businesses surveyed had to rely on their personal assets to accommodate their business needs, and even more may have to if this trend continues. The ability to find access to working capital becomes increasingly important as the number of businesses planning to grow rises. Without access to capital, these business owners may not be able to expand or succeed.
Is your business struggling with financing? Visit Access to Capital to learn more about funding options and resources for small businesses.
See more statistics on Texas small businesses in the graphic below: