Small Business Optimism At Five-year High Since Great Recession, Yet Growth Challenges Persist
Capital One and Pacific Community Ventures launch online mentoring platform to match small business owners with experienced advisors in marketing, finance and technology
MCLEAN, Va., May 4, 2015 /PRNewswire/ -- Small business optimism is at an all-time high since the Great Recession, according to the 2015 Capital One Small Business Confidence Score, an analysis of small business sentiment data collected by the Spark Business Barometer since 2009. The Spark Business Barometer is a quarterly survey of small business owners to gauge their attitudes and perceptions of national and local economic conditions, current and future business prospects, and other factors impacting business growth. According to the survey, small business sentiment has increased 33 percent since 2009 following the depth of the Great Recession, and continues to improve in 2015.
"We've seen real improvement in business owners' confidence about the stability and sustainability of their operations -- indicating many entrepreneurs are focusing less on recovery and looking ahead toward new prospects and growth. This is a terrific sign for our local and national economies given the tremendous impact small businesses have on job creation and innovation," said Keri Gohman, Head of Small Business Banking at Capital One. "But competing and growing in today's increasingly competitive and complex digital landscape can be tough – particularly for small businesses with limited funds, resources and time. Our goal is to make some of those resources more accessible, so small businesses can grow and succeed."
The Biggest Challenge: Attracting and Retaining Customers
Despite their increasing optimism, small business owners continue to face challenges when it comes to attracting and retaining customers. According to a recent Capital One Spark Business survey of 505 small business owners conducted online by Harris Poll in April, 76 percent of owners face marketing challenges, with 39 percent claiming they have not executed any marketing initiatives in the past six months. Some of the challenges uncovered by the survey include:
- Identifying and reaching new customer prospects (41 percent)
- Finding money to market their business (32 percent)
- Gaining attention due to local competition (18 percent)
- Getting advice on the best marketing approaches (18 percent)
- Customer retention (17 percent)
More than 64 percent of small business owners feel they're unable to effectively market their businesses the way they'd like to, according to the survey. Meanwhile, a majority have the desire to increase marketing efforts – with nearly 70 percent of small businesses saying they would designate extra funds toward marketing efforts – yet only eight percent of small business owners have a mentor who can lend the necessary insight or strategic direction to do so.
A Path toward Growth: BusinessAdvising.org
In an effort to help bridge this gap for all small business owners across the country, Capital One and Pacific Community Ventures have partnered to announce the national launch of BusinessAdvising.org, an online mentoring platform matching small businesses located in or hiring from low-income communities with expert advisors in areas such as marketing, technology, finance, and more.
"For small business owners, working with the right business advisor has a huge impact in achieving sustainable business growth," said Allison Kelly, Managing Director of Small Business Advising and Lending at Pacific Community Ventures. "And when small businesses thrive, communities thrive. With support from Capital One, BusinessAdvising.org can match skilled volunteer advisors with small business owners, fueling revenue growth and creating new quality jobs across the nation."
As part of this partnership, Capital One will also provide associate volunteers to serve as small business advisors. The launch of BusinessAdvising.org is part of Capital One's $150 million Future Edge initiative, designed to help individuals and entrepreneurs succeed in a digitally-driven economy. To further support the Future Edge initiative, Capital One is investing an additional $500,000 in low-interest loans to Pacific Community Ventures to help expand their lending efforts to microbusinesses across the state of California.
"At Capital One, we are keenly focused on empowering individuals, businesses and communities with better technology, as well as useful products, resources and programs tailored to meet their needs," Gohman said. "Our research and interactions with business owners in the field fuels our commitment to offer the resources needed to succeed in today's digital economy. Through our strategic partnership with BusinessAdvising.org and the launch of programs like Spark Plug, Capital One is getting small businesses on the path to success through best-in-class resources, marketing expertise, and talented business advisors."
Spark Plug Gives Small Business Owners a Marketing Boost
As part of its ongoing initiative to recognize and reward its customers, Capital One has launched a customer campaign aimed at helping small business owners obtain what they want most – more customers. The Spark Plug campaign gives Spark Business Bank customers in select markets a chance to win a custom advertising boost in their community. For more information on the Spark Plug program and how to submit an entry, please visit www.capitalone.com/sparkplug. Capital One Spark Business is also providing a wide variety of offers to their existing and prospective customers throughout the entire month of May. For more information, please visit www.capitalone.com/seizethemay.
The Capital One Spark Business survey was conducted online by Harris Poll on behalf of Capital One within the United States between April 1 and 6, 2015, among 505 adults aged 18 and older, who are business owners with less than $10 million in annual revenue. Figures for annual revenue were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents' propensity to be online.
About Spark Business
Capital One® offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Spark Business from Capital One comprises a suite of products and services specifically designed for small business, including credit cards with unlimited rewards, no-fee checking and savings, and secure and flexible merchant service offerings. Spark Business provides tips, resources, and inspiration to help your business thrive at www.SparkBusinessIQ.com. For more information, visit www.CapitalOne.com/smallbusiness.
About Pacific Community Ventures
Pacific Community Ventures is a 501(c)(3) nonprofit that was founded in 1998 by former Silicon Valley executives who believed that small businesses in underserved communities should have easier access to the high-caliber advice and capital that revolutionized the high-tech industry. PCV's services include advice and capital to help small businesses succeed, plus impact investing evaluation, research, and policy services to propel the impact economy forward. For more information visit: www.pacificcommunityventures.org or www.businessadvising.org.
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SOURCE Capital One
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