Over 70% of Small Businesses Plan to Obtain Funding This Year
May 2, 2024
Delaney Sexton
Contributing Editor
Over 70% of Small Businesses Plan to Obtain Funding This Year
“Small business owners’ economic concerns have also mostly decreased, although hesitations around certain factors have remained elevated since last spring. Notably, concerns around a potential recession and supply chain issues are each down 16 percentage points – a significant decrease and testament to their assurances for growth and success in the year ahead. However, with uncertainty around broader macroeconomic factors, small business owners are tempering their plans to expand their businesses, hire more employees and obtain funding,” says Sharon Miller and Raul Anaya of Bank of America.
Bank of America released its 2024 Business Owner Report, and these are the facts related to small businesses:
During 2024, 71% of small business owners plan to obtain funding for their small businesses. Plans to obtain funding are down by 11% from last year’s reading of 82%. When small businesses obtain funding, they plan to use:
- 61% said business credit cards
- 45% said personal savings
- 28% said personal credit cards
- 25% said traditional bank loans
Small businesses are also less likely to have plans to expand their business this year. Down 9% from last year, 39% of small businesses plan to expand their business over the next year.
When asked about applying for a bank loan or line of credit, only 16% of small businesses say they intend to this year. Last spring, 24% of small businesses reported that they planned to obtain a bank loan or line of credit.
Interest rates rank high on business concerns, with 63% of small businesses claiming it is a concern for them. In comparison, small businesses ranked credit availability as the second lowest concern for their business. Only one-third of small businesses think credit availability is a concern.