New York small businesses may be feeling confident about growth in the near future, as the most recent Private Capital Access Index from Pepperdine University and Dun & Bradstreet demonstrates. 70 percent of small businesses surveyed are planning to hire in the next month, compared to just 62 percent nationally. Not only that, but 36 percent of those New York small businesses are planning to raise financing, coupled with 67 percent in need of financing due to planned growth. While the statistics on growth are positive, New York small businesses fall drastically short compared to the national average when it comes to receiving loans. Only a fifth of businesses that applied for a loan in Q2 2015 received one, compared to 37 percent nationally. These numbers are staggeringly low, which could help explain why 57 percent feel that their growth opportunities are restricted, while 51 percent feel that their ability to hire is restricted.
The growth of New York small businesses may be eclipsed by the dearth loans. If they don’t find and obtain better access to small business loans, small business owners may have to make up the loss themselves, like they did in Q1 2015 when 39 percent were forced to exploit their personal assets to fund their business needs. Even with personal assets to fall back on, a lack of access to capital can make it hard for small businesses to flourish.
Need help finding funding options and resources? Visit accesstocapital.com to learn more about what’s available to small business owners.
See more statistics on New York small businesses in the graphic below: