Examination of Financial Patterns Using the Survey of Small Business Finances

摘要

The substantial growth in the number of small businesses over the past decade has increased the demand for debt and equity capital by small business owners. These businesses account for about 50 percent of private-sector output and employ more than half of private-sector workers over the past decade. Given small businesses significant role in innovation and economic growth, an understanding of trends in the types and sources of financing they use is important for policymaking, primarily because small businesses typically finance their businesses differently than larger businesses. This study will describe financing patterns of small businesses in 2003 and examine the changes in financing patterns of small business borrowers over the past decade (1993 - 2003). In addition, the analysis of changes in financing patterns will examine the impact (if any) that the rise of non-traditional, non-commercial lending has had on the importance of internal finance for small firm growth.