Study Finds Biggest Challenge for Local Business Owners is Credit and Financing
Between December 2018 and January 2019, the San Diego Small Business Lending Collaborative surveyed 129 existing and 101 prospective business owners in three San Diego Promise Zone zip codes (92102, 92113 and 92114). The purpose of the survey was to identify barriers to small business establishment and growth within the San Diego Promise Zone, a geographic area comprising of Barrio Logan, Southeastern San Diego and Encanto. Historically disadvantaged, the culturally rich communities within the San Diego Promise Zone possess unique barriers to economic growth.
Through a partnership between the Jacobs Center for Neighborhood Innovation, Accion Serving Southern California, Logan Heights Community Development Corporation, CDC Small Business Finance and the San Diego Small Business Development Center, and with support from JPMorgan Chase PRO Neighborhoods planning grant, we are able to share the following survey results and final report.
The study found that the biggest challenge business owners face is credit/financing. Only 12% of business owners have ever applied for business financing and out of those who have, they found only expensive options or were declined due to bad credit or income requirements. The final report outlines recommendations and strategies for small business owners in the San Diego Promise Zone to overcome these obstacles and grow their companies. For example, expanding access to entrepreneurship training and accelerator programs for low to moderate income populations.
Support for the San Diego Small Business Lending Collaborative and this plan was provided by JPMorgan Chase through its Partnerships for Raising Opportunity in Neighborhoods (PRO Neighborhoods) initiative.