According to a recent article in a newsletter from the Center for Rural Affairs, “A new survey shows a lack of available capital for small and start-up businesses!” The survey was conducted by the national Association for the Self-Employed also revealed that the primary sources of funding for new small businesses are credit cards and personal savings. Only 6% employed loans from financial institutions or government as primary sources of start-up captial.
Obstacles they faced to gaining capital included:
- Credit rating
- lack of collateral
- bank regulations & paperwork