BELLEVUE, Wash., Jan. 18, 2018 /PRNewswire/ -- Small business
owners are approaching 2018 with economic optimism and confidence,
according to a survey from small business financing company Guidant
Financial and online credit marketplace LendingClub Corporation
(NYSE: LC). The companies surveyed more than 2,600 small business
owners and aspiring entrepreneurs about reasons for going into
business, challenges they face and views on the current state of
small business in the country.
Guidant Financial and LendingClub collected data from its small
business customers in all 50 states. Data showed that "ready to be
my own boss" ranked as the top reason respondents pursued business
ownership in 2017, unseating the top reason "dissatisfaction with
corporate America" from 2016. While the data shows that today's
small business owner is still 72 percent male, 2017 saw an 18
percent increase in female-owned businesses.
Overall, business optimism is up. According to the survey, 63
percent of small business owners ranked satisfaction in today's
political climate a seven or above on a scale of 1-10. Only 37
percent ranked it a six or below. What's more, 75 percent of all
business owners rated their happiness level as an eight or
above.
The survey also included those who have not yet started a
business, but hope to. Similar to current small business owners, 55
percent of aspiring entrepreneurs feel confident about the state of
small business, rating their confidence at an eight or above on a
scale of 1-10. The biggest hurdles among those looking to start a
business are the inability to find funding, not identifying the
right opportunity, and not being sure where to begin. More than
half do not have cash for a down payment and 41 percent reported a
lack of knowledge about financing opportunities as challenges to
obtaining funding.
The survey also yielded valuable trend information on the U.S.
small business economy.
Highlights include:
- Demographics – 33 percent of respondents are in their
fifties, followed by 27 percent in their forties, 17 percent in
their sixties, 15 percent in their thirties, 4 percent between
18-29 and 4 percent at age 70 or above.
- Ethnicity – Minorities accounted for 47 percent of
aspiring entrepreneurs surveyed.
- Geography – California
topped the list in terms of the highest volume of entrepreneurs,
followed by Florida and
Texas. In years past, Texas held the No. 2 spot.
- Education – A college degree isn't required. In fact, 34
percent of respondents hold an HSD/GED.
- Financing Method – Cash, friends and family and
401k business financing such as
Rollovers as Business Startups (ROBS) are the most popular
financing methods among respondents.
While lack of capital/cash flow remains a top challenge for
small business owners, 68 percent report that their business is
currently profitable.
"From a small business perspective, we saw increased economic
optimism and confidence in 2017, and more entrepreneurs taking the
plunge to start a business," said David
Nilssen, CEO of Guidant Financial. "Tax reform and economic
growth stand to benefit many small business owners in 2018,
especially those forming C-corporations. As a result, we expect
business ownership to continue to increase."
"The survey results highlighted how people from all walks of
life are choosing to go into business for themselves, and it's
amazing to see that this diversity continues to grow," said
John Spottiswood, General Manager of
LendingClub Business Loans. "This variety of experiences and
thinking are exactly what make small businesses a prime place for
innovation. As emerging technologies continue to disrupt various
industries in 2018, small business owners are well suited to face
these challenges and thrive."
Guidant Financial and LendingClub are small business financing
experts committed to making access to capital seamless. Together,
they've provided access to nearly $4.5
billion to thousands of new business owners.
An accompanying infographic can be found here.
Methodology
Between November
28, 2017 and December 1, 2017,
Guidant Financial and LendingClub conducted an email survey of more
than 2,600 male and female small business owners and aspiring
entrepreneurs from the continental U.S., Alaska, and Hawaii. Ages of respondents ranged from 18 to
over 70.
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.
About LendingClub
LendingClub was founded to transform
the banking system to make credit more affordable and investing
more rewarding. Today, LendingClub's online credit marketplace
connects borrowers and investors to deliver more efficient and
affordable access to credit. LendingClub's technology platform
creates cost efficiencies, which are passed onto borrowers as
savings in the form of lower rates and to investors in the form of
solid returns. LendingClub is based in San Francisco,
California. Loans made by WebBank,
member FDIC.
Contact:
Mary Catherine
Citarelli
Hollywood Agency
(781) 749-0077
marycatherine@hollywoodagency.com
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SOURCE Guidant Financial