Valley Sierra SBDCServing Stanislaus and Tuolumne Counties
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How are businesses financed?

Posted On: 
Monday, December 18, 2017 - 2:28pm
startup capital chart

Published report by the SBA's Office of Advocacy 

Startups make heavy use of personal equity and traditional debt, with over half using their own personal savings (Figure 2). Census Bureau data show that employers made greater use of financing than did non-employers, but also continue to rely on personal savings.Roughly 30% of new non-employer firms and 7% of employer firms used no startup capital.

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Funded in part through a Cooperative Agreement with the U.S. Small Business Administration and a Grant with the Governor’s Office of Business and Economic Development. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA or the Governor’s Office of Business and Economic Development. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Contact the California SBDC closest to you.