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