OnDeck: 73% of Small Businesses Optimistic About Economy
OnDeck released the findings of its 2013 Main Street Pulse Report, a small business trends study. The study is based on data gathered from over 500 survey responses and approximately 10,000 business loan applicants nationwide across 700 different industries.
Key findings from the OnDeck Main Street Pulse Report reveal that 73% of small business owners believe the economy is getting better and want to grow their business. One in five small businesses have increased head count over the last six months and two in five plan to over the next six months.
Despite the optimism, one major challenge remains: access to growth capital. Of those who applied for capital, 64% were unable to secure any type of financing and 82% were denied for financing by their bank. Furthermore, small business owners are self-selecting out of the application process: two-thirds of business owners who didn’t apply for funding chose not to because they believed they would be denied by banks, not because they didn’t need capital.
“Our Main Street Pulse Report indicates that the majority of small business owners are optimistic about the economy, but have been stalled by traditional lenders,” said Noah Breslow, OnDeck’s CEO. “Despite strong demand for financing, small businesses are struggling to secure the capital they require to grow. Small businesses are a critical component of our economy, and the need for more funding alternatives like OnDeck has become increasingly apparent.”
Additional findings from the 2013 Main Street Pulse Report include:
•Small businesses have a median borrowing need of only $44,000
•84% of small business owners use funding for growth capital:
•29% for expansion and facility upgrades
•16% for inventory and equipment purchases
•39% for working capital
Top 3 small business challenges:
•Access to capital from traditional lenders
To view the full survey infographic, please visit click here.