WASHINGTON, July 1, 2015 /PRNewswire-USNewswire/ -- SCORE, – www.score.org - mentors to America's small businesses, has gathered statistics on the financial strains of small business owners in the United States. In the second quarter of 2015, overall small business optimism dropped for the first time since 2012. Lower revenues and tighter credit in 2015 are discouraging business owners.
Fewer loan approvals mean more reliance on owner's assets
Since 2012, small businesses (less than $5 million in revenue) have had a loan approval rate of less than 50%. Due to difficulties securing financing, entrepreneurs use their own money to fund their companies.
36% of small businesses depend on the owner's personal assets, while only 16% of mid-sized businesses ($5 - 10 million in revenue) rely on the owner's money.
Marketing is the top reason for financing
When small business owners were asked what they would do with $100,000, their answers ranged from promoting their company to hiring a full-time employee.
- 30% would market or promote their business
- 29% would pay bills or loans
- 22% would invest in equipment
- 17% would purchase inventory
- 11% would offer a new product or service
- 9% would remodel or expand their current location
- 8% would hire a fulltime employee
Download this month's SCORE Infographic for more details on the financial difficulties of American small businesses.
Since 1964, SCORE has helped more than 10 million aspiring entrepreneurs. Each year, SCORE provides small business mentoring, workshops and education to more than 375,000 new and growing small businesses. More than 11,000 business experts volunteer as mentors in over 320 chapters serving local communities with entrepreneur education.
For more information about starting or operating a small business, call 1-800/634-0245 for the SCORE chapter nearest you. Visit SCORE at www.score.org. Connect with SCORE at www.facebook.com/SCOREFans and www.twitter.com/SCOREMentors.
Bridget Weston Pollack
SOURCE SCORE Association