PCA Q1 2016 Survey Results Show Increased Optimism Toward Small Business Growth, But Caution Overall

Once a quarter, Pepperdine University’s Graziadio School of Business and Management and Dun & Bradstreet poll small and medium-sized businesses across the nation to learn more about those companies growth and access to capital. Overall, the Q1 2016 PCA Index findings revealed that small and medium sized businesses surveyed are more optimistic about their growth prospects than they have been for the past 4 years, but they are still cautious about the overall business environment and they still struggle to get loans. Here are the highlights*:


NationallyNationGraphic_Q4_2015 small

  • businesses with less than $5 million in revenue are getting loans less than half the time
  • BUT an average of 62% of business surveyed are in need of financing due to planned growth
  • business owners surveyed with less than $5 million in revenue, 61% say their growth opportunities are restricted, and 53% feel their ability to hire is restricted as well
  • business sought capital from alternative sources and relied on various types of personal assets, including: business credit cards – 61%, personal credit cards – 68%, and personal loans – 47%

Full National Infographic


 New YorkNew_York_PCA_Q4_2015 small

  • New York small businesses surveyed are feeling about as equally restricted as other businesses across the country: 58% of New York small businesses and businesses surveyed nationally feel their growth opportunities are restricted, and 49% feel their ability to hire is restricted, compared to 50% nationally
  • New York small businesses are seeking financing below the national average (25% v. 32%) and have been receiving loans at a lower rate than the national average (23% compared to 38%), which is 20% lower than three months ago

Full New York Infographic

 


CaliforniaCalifornia_PCA_Q4_2015 small

  • California small businesses surveyed are feeling more restricted than the rest of the nation (just as they were in Q4 2015): 62% report feeling their growth opportunities are
    restricted and 58% report feeling their ability to hire is restricted, compared to the national averages of 55% and 50% respectively
  • despite these restrictions, California small businesses are receiving financing on par with the national average of 38%
  • even with equal financing rates, California small businesses are relying on personal assets above the national average: 41% of California businesses surveyed transferred personal assets compared to 37% nationally

Full California Infographic

 


 FloridaFlorida_PCA_Q4_2015 small

  • Florida small businesses are feeling much more restricted than the national average: 71% feel their growth opportunities are restricted, compared to 58% nationally, and 68% feel their ability to hire is restricted, compared to 50% nationally
  • these feelings of restriction could come from an inability to get loans: Of the 56% of Florida small businesses that applied for a loan, only 29% received one, compared to 38% nationally
  • due to this lack of loans, 41% transferred personal assets, compared to 37% nationally

Full Florida Infographic

 


TexasTexas_PCA_Q4_2015_v04 small

  • Texas small businesses surveyed are relatively on par with national averages in terms of plans to grow and hire, seeking financing, and feelings of restriction.
  • Texas small businesses are receiving loans below the national average: 29% of the businesses that applied for a loan received one, compared to 38% nationally
  • 38% of Texas small business owners transferred personal assets, similar to 37% nationally. Both percentages are higher than just three months ago, up 5% and 4% respectively

Full Texas Infographic


PCA in the News:

Access to Funding Up but Demand is Down for the Small Business Sector


For more details, click the images below for the national and each state’s full infographic. To read the entire study, you can find the results report here and the trends report here.

Featured Photo Credit: mlesniowski, Twenty20

*Pepperdine Private Capital Index: PCA Index Survey Responses. First Quarter 2016. Survey results based on 2,469 national responses. ©Dun & Bradstreet, Inc. 2016. All rights reserved.

Featured Photo Credit: mlesniowski

, Twenty20

 

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