Nearly 75 percent Small Business Owners have Growth plans: Pepperdine University

As per the Nationalwide study conducted by Pepperdine University Private Markets Capital Project, nearly 78 percent of small business owners are having plans to expand their companies. But, only few of them have capital or resources to expand their business.

About half of the small business owners who were surveyed expressed that they were relying on family and friends for money. Almost one third of them expressed that they had obtained bank loans and about 10 percent of the small business owners had chosen alternative lenders which also included those that give loans against the company’s assets.

Key findings of report

  • More than 63 percent of the small business owners have increased their growth opportunities.
  • About 40 percent of the small business owners reported decline in the access to growth capital.
  • About 44 percent of them reported drop in the confidence in economy.
  • 55 percent of them reported increase in competitive pressures.

About 31 percent of the small business owners who were surveyed expressed that the access to growth as the top business issue in any category. About 27 percent of them felt that economic environment as the secondary to the access to the capital.

About 25 percent of small businesses are in the service industry, 14.4 percent in technology, 12.7 percent in finance and 12.2 percent in manufacturing. About 26 percent of small business owners respondents have reported that they have been operating their companies for more than past 20 years. About 17.9 respondents were operating from 10 to 20 years. Almost all the respondents are owners of their firms and about 61.9 percent of them are active owners with more than 50 percent ownership.