“These survey results align with what we’ve been hearing from small business owners all over the country during our crowdfunding roadshows,” said Maurice Lopes, founder and CEO of EarlyShares.com
(PRWEB) October 25, 2012
Although the presidential debates focused heavily on supporting small businesses, a new survey reveals that most entrepreneurs think neither candidate will do enough to help them grow and create jobs.
Conducted to participants of The Small Business Challenge funding competition sponsored by EarlyShares.com, the poll found that 69 percent of small business owners say President Obama isn’t doing enough to support them. But 53 percent said they don’t think Mitt Romney will do any better.
The real culprit, however, seems to be banks: 88 percent of the small business owners surveyed say banks aren’t doing enough to support them.
“These survey results align with what we’ve been hearing from small business owners all over the country during our crowdfunding roadshows,” said Maurice Lopes, founder and CEO of EarlyShares.com, an Equity Based Crowdfunding platform. “They’re ready and willing to help the economy recover by creating new jobs, but they don’t have access to the necessary funding.”
More than 66 percent of the small business owners described their access to financing and new capital as non-existent or very limited. Seventeen percent said funding is somewhat accessible, and only 3 percent said it is very accessible.
Those findings are supported by additional survey responses:
- The most common sources of funding over the past three years have been friends and family (26 percent) and personal loans (17 percent).
- Only eight percent said they have been able to secure a bank loan over the past three years. More than 26 percent have been rejected for a bank loan.
- About five percent have received funding from venture capital or private equity firms. More than 32 percent unsuccessfully pursued funding from those sources.
About a quarter of the small businesses said they would hire new employees with additional funding. The rest of the responses were fairly evenly split between purchasing new equipment, marketing and advertising, expanding into new markets, and introducing new products or services.
The SMB Challenge survey polled more than 100 small business owners between the first and last presidential debates. Many of the respondents are participating in the online funding competition, which is offering $50,000 in cash and marketing resources for job creation to small businesses across the country.
To qualify, businesses must submit an application at SMBchallenge.com and receive at least 100 votes from their supporters. The submission, nomination and voting process ends Oct. 31. The contest is sponsored by EarlyShares.com, lonelybrand and CometAds.
EarlyShares.com, an Equity Based Crowdfunding platform formed in 2011, creates a space which helps entrepreneurs find online funding from a crowd of investors in exchange for small amounts of share ownership. The company is sponsoring the Small Business Challenge as part of its efforts to raise awareness about Equity Based Crowdfunding and motivating small business funding. Equity Based Crowdfunding, which was legalized when the JOBS Act was signed into law in April 2012, will become a regulated investment option in 2013.