Small businesses are getting loans less than half of the time, so owners used their own money.
36% of small businesses (less than $5 million in revenue) used personal assets to fund their business while only 16% of medium businesses ($5 – 10 million in revenue) used personal assets for business funding.
When asked what they’d do with $100 thousand, small business owners said:
• 30% would use it to market/ promote their business
• 29% would use it to pay bills and loans
• 22% would invest in equipment
• 17% would purchase inventory
• 11% would offer a new product or service
• 9% would remodel/ expand their current location
• 8% would hire a full time employee
O’Bannon, Isaac M. Small Business Optimism Dips In 2nd Quarter. Retrieved from http://www.cpapracticeadvisor.com/news/12104062/small-business-optimism-dips-in-2nd-quarter
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