What impact does a small business loan really have? How can we measure the potentialresults microloans can have on a business and its community? The EntrepreneurTrackerStudy, an initiative of FIELD at the Aspen Institute and conducted in partnership with Opportunity Fund, aims to analyze and yield important insights regarding the effectiveness of microloans directly from over 250 entrepreneurs, many of whom are funded by Accion.
With over 92 percent of businesses in the U.S. having fewer than five employees,microloans received at the right time can produce dramatic results for a business. TheEntrepreneurTracker study found one-year post-loan business owners report thefollowing key findings:
- Stronger Businesses: 95% of businesses remain open despite challenging economic times
- Economic Opportunity:4.7 jobs created or sustained on average bybusinesses with employees
- Satisfaction with Income:52% report satisfaction with income earned fromtheir business
- Increased Compensation:98% median increase in clients’ financial drawfrom their businesses
The impact not only highlights the significance of small loans for those surveyed, but the ways in which accessible financing partnered with advice can go beyond the monetary value and impact entire communities. The businesses surveyed represent a diverse client base, with 42% being women entrepreneurs, 69% minorities and 61% having employees. 38% of business owners surveyed were looking to substantially grow theirbusiness in terms of revenue or staff size with a microloan and are stronger today because of them. Accion is passionate about being able to be more than just a lender andbecome a partner in accomplishing their goals.
Join us in highlighting the findings of the survey and the effectiveness of small loans and their role in the success of small business. Stay tuned throughout the following weeksand join the conversation with #EntrepreneurTracker as we continue discussing theresults of the survey and how we can continue to help small businesses succeed.