Microbusinesses are Growing Across the Nation
Once a quarter, Pepperdine University’s Graziadio School of Business and Management and Dun & Bradstreet poll small and medium-sized businesses across the United States to learn more about those companies’ growth and access to capital.
- Microbusinesses across the nation are planning to grow at higher rates than their small and medium counterparts. Thirty percent of microbusinesses surveyed are planning to raise financing in the next 6 months, while only 17% of medium businesses plan to raise funding in the same period.
- However, microbusinesses are feeling more restricted by the current business environment – 51% of microbusinesses surveyed feel their ability to hire new employees is restricted, compared to only 21% of medium businesses who feel the same.
- Banks are primarily lending to medium businesses, and microbusinesses surveyed are falling behind: Only 17% of microbusinesses who applied for a bank loan in Q2 2016 received the loan, compared to 70% of medium businesses.
- Microbusinesses are seeking capital from alternative sources and are relying on personal assets more than their counterparts. For microbusinesses surveyed, 72% rely on personal credit cards for capital, which is 5% higher than medium businesses.