Thanks again to those that participated in the survey and contributed to the production of meaningful results.
Q1 2011 Theme – “The Tale of Two Camps”
Based on survey results, SDR notes a near 50/50 split of respondents. In one camp, we have the 53.1% of respondents that are fully satisfied by the credit availability provided by their current relationship (or have no need for a banking relationship). In the other camp, the remaining 46.9% of respondents are not currently satisfied when it comes to their banking relationship.
You may recall our previous blog identifying access to growth capital as a top business issue, where we referenced the Pepperdine University – Private Capital Markets Project finding that 31% of business owners cited a lack of access to capital as the number one business issue. It would appear that 3 months, and several gusts of political hot air from Washington, later business owners are still grappling with capital availability.
In an effort to find some upbeat, encouraging assurance to our business brethren in the second camp, you can rest easy knowing that U.S. Treasury Department Secretary Timothy Geithner and the Obama Administration are on the case. Back in March, the Administration hosted a hosted a conference titled “Access to Capital: Fostering Growth and Innovation for Small Companies.”
Based on the published agenda, two-thirds (2/3) of the panel time was devoted to key lower-middle market and middle-market issues such as pre-IPO funding and IPO funding: two topics near and dear to the heart of the 5,865,203 U.S. businesses with 500 or less employees (U.S. Census Bureau). Clearly the Administration is working diligently to increase the number of IPO filings from an average of 161 per year (2008-2010) to a more meaningful number, like say 2,750,780 (SDR’s estimate of the number of small and medium sized businesses that are in camp 2 and looking for capital based on our poll results).
For the few small and medium-sized business owners out there that don’t see the public markets as an optimal source of capital, your next best bet may be to explore the SSBCI program that is sweeping six-fiftieths (6/50) of the nation! For business owners lucky enough to operate in California, Connecticut, Michigan, Missouri, North Carolina, or Vermont this may be the solution you’ve been looking for.
For the one or two businesses not addressed by Obama’s IPO suggestion or SSBCI program, give us a call, maybe we can help.