Entrepreneurs aren’t afraid of taking risks and finding new ways to tackle old problems, which is a reason why small businesses create two-thirds of all new jobs and support 55 percent of all jobs. Without small businesses, our economy – and our local communities – would crumble. That’s why it’s important to take time to appreciate our country’s entrepreneurs during November, which is National Entrepreneurship Month.
Whether entrepreneurs are creating jobs, pushing important new ideas or simply brightening up the main street of town, their hard work is vital to our economic fabric. But small business owners face too many challenges that keep their businesses from thriving. During National Entrepreneurship Month, we should focus on what we can do to help fulfill the promise of the small business economy.
Small businesses keep California humming. They make up an impressive 99.2 percent of California’s employers and employ more than 6 million Californians. But small businesses can’t thrive and grow – or even get off the ground – if they can’t access loans or credit.
Unfortunately, access to capital has become a real problem for small business owners, with big banks only approving two out of 10 small business loan requests. The recession placed a chokehold on funding from banks, leading many institutions to reduce or eliminate loans valued below $250,000. This change hit small businesses particularly hard, as 68 percent of small businesses seek loans of $250,000 or less. Plus, other banks simply won’t lend to businesses with annual revenues of less than $2 million. Given these statistics, it’s no surprise that Small Business Majority’s polling found 90 percent of small business owners identify access to capital as a top concern.