The state of small business across the nation continues to improve, according to the Pepperdine Private Capital Access Index from Pepperdine Graziadio School of Business and Dun & Bradstreet. Both private capital access and demand have increased in Q3 2015, by 2.8 percent and 0.7 percent respectively. Businesses surveyed seem optimistic based off their future plans to grow and finance their expansions. Almost half of respondents revealed their main purpose for raising financing was for growth or expansion, up from 7 percent since Q3 2014. The study also revealed that 62 percent of respondents planned future growth or expansion in Q3 2015, a 12 percent increase since Q3 2014, while 56 percent expect growth due to increased demand in Q3 2015, compared to 43 percent in Q3 2014.
Small businesses have also been turning to lending sources other than banks, according to the survey, and this could be an indicator that they are determined to find funding and to succeed. Forty-Five percent of respondents sought to raise funds through personal credit cards in Q3 2015 (compared to 34 percent in Q3 2014); and 55 percent attempted to raise financing through a business credit card in Q3 2015 (compared to 40 percent in Q3 2014).
Despite increased optimism, though, restrictions and access to capital are still concerns for small businesses, according to the survey results. Of businesses surveyed with less than $5 million in revenue, 60 percent feel their ability to grow is restricted (a 7 percent increase from Q3 2014), and 35 percent of businesses with revenue between $5 million and $100 million feel the same restriction (up 3 percent from Q3 2014). Both of the groups surveyed also reported feeling their opportunity to hire was restricted. In addition, small business loans are still being rewarded less than half of the time.
For more Q3 2015 PCA Index results on the state of small business nationwide, view the infographic below or read the official press release.
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