News Column

Dun & Bradstreet Credibility Corp. and Pepperdine University Release Quarter 2 Survey Results

June 18, 2014

Study reveals that capital access has increased, while demand is down from Q1 2014

LOS ANGELES--(BUSINESS WIRE)-- Results from the latest Dun & Bradstreet Credibility Corp. and Pepperdine Private Capital Access (PCA) Index quarterly report show access to capital for businesses of all sizes continues to increase in Q2 2014 from the previous quarter. The quarterly index measures the accessibility and demand for capital among the nation’s small businesses, as well as the transparency and efficiency of private financing markets. The Q2 2014 PCA Index summary report is available here.

The PCA Index number continues to rise, hitting its all-time high (since Q2 2012) of 28.9 percent. The all-time low was in Q1 2013, with an index value 25.6 percent. However, the PCD (Private Capital Demand) Index continues to reflect weakness in demand for financing, showing a 3.7 percent decrease from Q1 demand indication. Nearly 67 percent of respondents credit lack of cash flow for not planning to raise growth financing in the next six months.

While demand for capital is on the decline, 52 percent of respondents are planning to hire more employees in the next six months.

“What we’re seeing so far in 2014 with our PCA Index is that small businesses are optimistic about growth, but hesitant to seek capital from outside sources based on a misconception that they aren’t qualified,” said Jeff Stibel, Chairman and CEO of Dun & Bradstreet Credibility Corp. “The truth is in the numbers that there continues to be a disconnect between perception versus reality as the PCA Index continues to rise as small businesses are consistently achieving success with outside funding from banks and alternative sources. It’s imperative that this disconnect is resolved if we want small businesses’ growth to fuel our economy’s recovery in this recession.”

“The uptick in hiring is a sign that our economy is growing and is cause for cautious optimism,” said Craig R. Everett, PhD, Director of the Pepperdine Private Capital Markets Project. “However, it remains to be seen how many new jobs will be created and if they are full-time, part-time or seasonal employment. Raising minimum wage in a number of cities may also impact small businesses’ ability to hire additional workers. The continued downward trend in the demand for capital is certainly problematic for economic growth prospects.”

The survey found that while 59 percent of respondents characterize the current business environment as difficult to raise new business financing, over half of those businesses that actually did apply for a bank business loan were successful. Nearly 28 percent of the respondents plan to seek new financing in the next six months, with 66 percent of these businesses seeking to obtain a bank business loan.

Other key findings from the Index include:

  • The Q2 2014 Private Capital Access (PCA) has increased 2.3 percent compared to Q1 2014.
  • 41 percent of respondents say the current business environment is restricting their ability to hire new employees, a 5 percent decrease from Q1’s 46 percent.
  • 58.4 percent of private businesses (who attempted to get financing) attempted to get a bank loan in the last three months and 54 percent of them were successful.
  • 24.9 percent of those respondents (that attempted to get financing) applied for asset-based loan in the last three months and 30 percent of them were successful.

    The Q2 2014 Index report was derived from 1,251 completed responses collected from May 9 to May 17, 2014 and contrasted with survey results collected from January 29 to February 28, 2014.

    Download the latest index data at http://bschool.pepperdine.edu/accesscapital and follow us on Twitter at @GraziadioSchool and @DandB.

    About Pepperdine University Graziadio School of Business and Management

    Founded on the core values of integrity, stewardship, courage, and compassion, Pepperdine University’s Graziadio School of Business and Management has been developing values-centered leaders who advance responsible business practice since 1969. Student-focused, experience-driven and globally oriented, the Graziadio School offers fully accredited MBA, Masters of Science, bachelor’s completion and non-degree executive business programs for business professionals, entrepreneurs, managers and senior executives at all stages of their professional and personal development. More information: http://bschool.pepperdine.edu/newsroom

    About Dun & Bradstreet Credibility Corp.

    Dun & Bradstreet Credibility Corp. is the leading provider of business credit building and credibility solutions for businesses. The company helps businesses establish their credit with a D&B D-U-N-S® Number and provides the only business credit solution available to businesses looking to build, monitor, and impact their business credit and credibility. The company’s headquarters are in Los Angeles, CA with offices throughout the United States. For more information on the company, please visit www.DandB.com. Twitter: @DandB




    Allison+Partners for Dun & Bradstreet Credibility Corp.

    Alexandra Gardell Kreuter, 646-428-0618

    alexandra@allisonpr.com

    or

    Dun & Bradstreet Credibility Corp.

    Lauren Simpson, 310-919-2230

    lsimpson@dandb.com

    or

    For Pepperdine University’s Graziadio School

    Patrick George, 916-498-7731

    pgeorge@ka-pow.com

    Source: Dun & Bradstreet Credibility Corp.


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