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Challenges for small business growth

A mid-February press release suggests that, while capital is becoming more available for businesses in general, it isn't as available for small business start-ups. In addition, fewer people are interested in starting new businesses anyway.

By William Atkinson | Updated on March 02, 2015

A mid-February press release, titled “State of Entrepreneurship: Mixed Indicators Prompt Call for Entrepreneurial Renewal,” from the Ewing Marion Kauffman Foundation (www.kauffmann.org), an organization with a focus on promoting entrepreneurial activities in the U.S, suggests that, while capital is becoming more available for businesses in general, it isn’t as available for small business start-ups. In addition, fewer people are interested in starting new businesses anyway.

The release noted that the availability of venture capital and angel investing has surged recently. In fact, more venture capital had been invested in the first three quarters of 2014 than in any single year since 2001. However, business creation remains slow, and access to capital is difficult for young companies. Adding to the challenge is that survival rates of new businesses have been falling since the early 1990s.

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