LOS ANGELES, Calif. (June 22, 2015) – Small businesses are seeking and receiving growth capital at the highest rate since 2012 according to results of the latest Dun & Bradstreet and Pepperdine Private Capital Access (PCA) Index. The quarterly study measures the accessibility and demand for capital among the nation’s small and mid-sized businesses.
Demand for capital by small businesses (those with less than $5 million in revenues) increased 9.1% since Q1 2015, hitting the highest level since Q4 2012. At the same time, access to capital by small businesses increased by 7.9% since the survey began in 2012, and 1% since Q1 2015.
“The results are the highest growth in access to capital for businesses that we have seen since launching our Index,” said Jeff Stibel, Vice Chairman of Dun & Bradstreet. “Small businesses are accessing capital at a rate that we haven’t seen since before the recession began. Their optimism and demand is a promising sign that economic recovery is in full swing.”
The increase in access and demand for capital is consistent with other positive indicators in the sector. Forty-eight percent (48%) of small businesses are reporting an increase in revenue over the last 12 months, a 4% increase from three years ago. Businesses are also optimistic that this trend will continue, with 72% anticipating an increase in revenue over the next 12 months, a 10% increase from the 2012 report.
“The increase in demand for capital by small businesses is very encouraging,” explains Dr. Craig R. Everett, Director of the Pepperdine Private Capital Markets Project. “We are hopeful that this increased demand will translate into business expansion in the sector.”
Other notable trends small businesses are reporting for Q2 2015 include:
• 34% of small businesses plan on raising financing in the next six months; up 2% from Q2 2012
• 38% of small businesses transferred personal assets to the business over the last 3 months; down 7% from Q2 2012
• Fewer small businesses are demanding capital to refinance existing loans, with a 12.7% decrease since 2012
The Q2 2015 Index report was derived from 3,693 completed responses collected from April 6 – April 24, 2015 and contrasted with survey results collected from January 20 to February 6, 2015. Download the latest index data at http://bschool.pepperdine.edu/accesscapital and follow us on Twitter at @GraziadioSchool and @DnBUS
About Dun & Bradstreet
Dun & Bradstreet(NYSE:DNB) grows the most valuable relationships in business. By uncovering truth and meaning from data, we connect customers with the prospects, suppliers, clients and partners that matter most, and have since 1841. Nearly ninety percent of the Fortune 500, and companies of every size around the world, rely on our data, insights and analytics.
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About Pepperdine University Graziadio School of Business and Management
A leader in cultivating entrepreneurship and digital innovation, the Pepperdine Graziadio School of Business and Management focuses on the real-world application of MBA-level business concepts. The Graziadio School provides student-focused, globally-oriented education through part-time, full-time, and Executive MBA programs at our 5+ Southern California campuses, Northern California campus, as well as through online and hybrid formats. In addition, The Graziadio School offers a variety of Master of Science programs, a Bachelor of Science in Management degree completion program, Presidential and Key Executives MBA and executive education certificate programs. Follow the Graziadio School at www.facebook.com/pepperdine.graziadio and https://twitter.com/graziadioschool.
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