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Poll: Florida ranks high for difficult financing environment

New survey data shows that Florida ranks fourth worst in the country for limited growth opportunities due to the difficult financing environment.

The survey of 5,997 small businesses by Pepperdine University’s Graziadio School of Business and Management in partnership with Dun & Bradstreet Credibility Corp. shows that the current business financing environment is restricting both growth opportunity and the ability to hire new employees, especially for small businesses. Among the 5,997 survey respondents, 64% of businesses with revenues under $5 million said difficulty in securing financing is limiting their growth potential and 55% said it is restricting their plans to grow their workforce.

The First Quarter 2012 Private Capital Access Index survey results which will contribute to a forthcoming new indicator to measure the demand for, activity and health of the privately-held businesses. The First Quarter 2012 study is available here: http://bschool.pepperdine.edu/accesscapital

“Unfortunately, the tight credit market is impacting our economic recovery,” said Dr. John Paglia, director of the Pepperdine Private Capital Markets Project and associate professor of finance at Pepperdine University’s Graziadio School of Business and Management. “What we are seeing is business owners increasingly looking to unconventional financing options to grow their businesses and in some cases they are putting their expansion plans on hold altogether.”

The following states had the highest percentage of businesses that claim they are facing limited growth opportunities due to the difficult financing environment:

1.       Nevada (75%)

2.       New Mexico (72.6%)

3.       Maryland (70.5%)

4.       Florida (70.2%)

5.       Virginia (68.8%)

The research found that 46% of business owners with revenues under $5 million transferred personal assets to their business over prior six months compared to 25% of business owners with revenue between $5 million and $100 million. When asked what types of personal assets they tapped into, 68% of both large and small businesses transferred funds from personal savings or investments.

 

Comments

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amigay

So then all the business tax breaks the Regressives keep pushing aren't working and aren't the real solution?

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