Guidant Financial Reports On The State Of U.S. Small Business In 2016

BELLEVUE, Wash., Jan. 25, 2017 /PRNewswire/ -- Small business owners are approaching 2017 with economic optimism and plans for growth, according to a survey from small business financing company Guidant Financial. The company, which helps small business owners secure financing to start, buy or grow a business, enabled more than 2,000 entrepreneurs to secure $400 million in financing in 2016.

Guidant Financial pooled data from more than 1,000 of its small business customers from all 50 states. Statistics showed that "dissatisfaction with Corporate America" ranked as the No. 1 reason respondents pursued business ownership in 2016. The data shows a nearly 30 percent increase in female-owned businesses since 2015, and less reliance on cash. In fact, use of cash to start a business decreased by half and reliance on SBA loans decreased by 35 percent since 2015. This demonstrates a trend toward alternative forms of financing, such as 401(k) business funding (formally known as Rollovers for Business Start-ups or ROBS).

The survey also yielded valuable trend information on the U.S. small business economy.

Highlights from the survey include:

• Demographics – Year over year, Guidant saw an 84 percent increase in entrepreneurs age 30-39. However, age 50-59 remains the most popular age among Guidant Financial clients.
• Geography – Once again, California topped the list in terms of the highest volume of entrepreneurs leveraging ROBS to help finance their businesses, followed by Texas and Florida.
• Multi-Source Financing – ROBS remained the most popular form of financing at 95 percent, with cash and Small Business Administration (SBA) loans coming in second and third.
• Type of Business – Buying a new startup or franchise was the top choice at 57 percent, followed by buying an existing startup or franchise at 39 percent.
• Franchise – The UPS Store, Anytime Fitness, 9Round, Nothing Bundt Cakes and Wild Birds Unlimited were the top five most funded franchise brands.
• Industry – Food/restaurant, health/beauty/fitness and business services were the top industries for businesses started or purchased.

The survey also showed promising plans for growth. In fact, 53 percent of respondents are looking to grow their current business operations.

"Despite political uncertainty in 2016, the entrepreneurial spirit among the small business community remained solid," said David Nilssen, CEO of Guidant Financial. "Overall, businesses enjoyed increased profitability, and more than half have plans for growth. Today's entrepreneur contributes to the U.S. economy by creating American jobs, and we expect that to continue in 2017," added Nilssen.

See the accompanying infographic from Guidant Financial here.

Since 2003, Guidant Financial has helped 14,000 entrepreneurs in all 50 states to deploy more than $3 billion in funding to start or acquire a small business or franchise. These businesses have in turn added more than 80,000 U.S. jobs.

About Guidant Financial
Guidant Financial helps business owners secure financing to start, buy or grow a business. An industry leader in innovative business and franchise financing, Guidant works with new and existing entrepreneurs to identify, evaluate and deploy customized financing solutions. Their services include, but are not limited to, 401(k) business funding, SBA loans, unsecured credit and portfolio loans. Visit Guidant on the web at guidantfinancial.com.

Contact:
Brooks Wallace
Hollywood Public Relations
774.773.9571
[email protected]

SOURCE Guidant Financial

Related Links

https://www.guidantfinancial.com