Although most of their numbers in the Private Capital Access Index* from Pepperdine University and Dun & Bradstreet are below the national average, Texas small businesses seem positive in their plans for growth, with 59 percent of businesses planning to hire in the coming months, and 59 percent in need of financing for planned growth. The outlook for getting a loan, though, is not quite as optimistic. Only 28 percent of the Texas small businesses surveyed that applied for a loan in Q2 2015 received one, compared to 37 percent nationally. This lack of financing could be the reason Texas small businesses are feeling more constrained than the rest of the country. Over half of Texas small businesses surveyed feel their growth opportunities are restricted and 48 percent feel their ability to hire is restricted.
A lack of loans could hurt the growth of these small businesses and could pressure them into using their personal assets in order to grow or just get by. In Q1 2015, almost 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 access to loans doesn’t increase significantly in the state. As the number of businesses in need of financing for growth increases, it becomes more important to have better access to capital. Without strong financing options, Texas small business owners may not be able to prosper.
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: