According to the SBA’s Office of Advocacy, businesses with fewer than 500 employees now comprise 99.9% of all firms doing business within U.S. borders.
And, since small businesses accounted for almost two-thirds of of net new job growth from 1993-2016, business is booming for First Bank SBA—one of Main Street’s biggest advocates.
From an entrepreneurial standpoint, what’s also notable is that the majority of recently opened businesses have stuck around—in fact, eight out of 10 establishments started in 2015 survived until 2016. And, over the long haul, about one-third of businesses started over the past decade are still doing business today.
“We all benefit if we are able to foster a vibrant entrepreneurial ecosystem that best supports ongoing small business growth and job creation in America,” said Kerry Healey, president of Babson College, the country’s top-ranked entrepreneurial school.
While doing their part to fuel the economy, today’s entrepreneurs and small business owners are transforming the national marketplace into one that’s more diverse than ever before.
- 45% of businesses are at least 50% women-owned.
- 29.3% are minority-owned.
- 14.4% are immigrant-owned.
- 9.3% are veteran-owned.
Although this is great news, Babson researchers dug deeper to find out just what else was going on. Babson’s 2016 report, The State of Small Business in America, showed that growth-oriented small businesses and their counterparts continue to face plenty of challenges and opportunities.
- It’s hard for entrepreneurs and small business owners to obtain the capital and/or credit they want.
Respondents rely on banks as their primary source of funding, and are about four times more likely to seek funding from financial institutions than any other source. However, across all sources of capital, overall survey respondents applied for a median amount of $100,000, but received just $40,500. First Bank SBA experts know each type of SBA lending program, including SBA 7(a) and customized industry loans. At First Bank SBA, we don’t think of loans as just transactions, and never rely on formulas for loan approvals. We rely on our lending expertise and industry knowledge, ensuring the most thoughtful and personalized lending experienced possible.
- Government regulation, technology limitations, IP protection, and cybersecurity weigh heavily on their minds.
Small business owners are innovators, and know that an increased focus on protecting their assets can boost their productivity and competitiveness. However, 60% of respondents said they had trouble, at some level, understanding and managing government regulations and laws. And, when they are able to innovate, fewer than half of business owners know how to protect their intellectual property with patents. With lower monthly payments, competitive rates, and long repayment terms of up to 25 years, First Bank SBA can help ensure that you have the skills and knowledge needed to protect your intellectual property and remain competitive in your industry.
- Financial issues make it difficult to hire the best people and the work with the state-of-the-art technology.
More than 70% of respondents found it difficult to hire qualified employees — most of the candidates they see either lack the skillset needed to succeed, want too much money to join the firm, or needed benefits that weren’t available. For those businesses with employees already in place, nearly half of survey participants said training, maintenance, and upgrades proved to be cost-prohibitive.More capital equals freedom—the chance to upgrade where you need to, hire and keep your best employees, and spend your time focused on growing your small business. Stop recruiting and training replacement employees on out-of-date equipment, and talk to us about an SBA loan that meets your needs.
As the most experienced SBA lending team in the country, we have the skills and knowledge to help launch (or grow) your business today. Ready to get started?