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Financial Needs of Small Businesses (2016)
Cengage
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The 2016 Small Business Credit Survey published in 2017 shows:

  • Most firms are optimistic about the future, expressing expectations for 2017 similar to those they held for 2016; a net 61% expect revenues to grow and a net 39% anticipate job growth in 2017
  • At the same time, debt expectations are modest: 19% of firms expect to increase their debt level in 2017. Thirty-four percent of firms increased their debt level in 2016.

 

And in terms of funding

  • Among nonapplicants, 47% indicated they have sufficient financing.
  • Debt aversion is fairly common—27% of nonapplicants said they didn’t want to take on debt.
  • Seventeen percent of nonapplicants reported being discouraged, meaning they did not apply for financing because they believed they would be turned down.Financial Needs of Small Businesses.png

     

 

For discussion:

Why do you think that small business owners prefer to avoid debt financing?