Monitor - November/December 2011

THE STATE OF SMALL BUSINESS REPOR T, a survey of 10,637 privately held businesses conducted by the Pepperdine Private Capital Markets Project in cooperation with Dun & Bradstreet Credibility Corp. (DBCC) indicated that small businesses continue to face major challenges in accessing the capital needed to grow. Nonetheless, small businesses are much more optimistic about the economic forecast than larger companies and are more likely to hire in the coming months.

Of those respondents that tried to raise capital within the previous 12 months, 35% applied for bank loans and only 50% of those that applied were successful (whereas 16% of those trying to raise capital looked to friends and family, with a success rate of 79%). While business owners have a negative outlook on general business conditions, small business owners indicate that they are more likely to hire additional staff in the next six months. Small business owners cited access to capital among the top reasons preventing small business owners from hiring new employees, 22% cited access to capital.

“We are proud to facilitate one of the largest surveys of small businesses ever conducted in the U.S. by
offering the Pepperdine researchers access to DBCC’s vast database of small businesses,” said Jeffrey Stibel,
chairman & CEO, DBCC. “These results make clear that small businesses are poised and ready to jumpstart
this country’s economic engine, but are restrained by numerous obstacles accessing the capital that is so
critical to growing these companies.”
“The Pepperdine Private Capital Markets Project State of Small Business Report gives capital providers
and policymakers a unique look at how small businesses are faring. A comprehensive solution to our economic
crisis must include input from small businesses as well as members of the private capital community,” said
John Paglia, who directs the Pepperdine Private Capital Markets Project and is an associate professor of
finance at Pepperdine University’s Graziadio School of Business and Management. n

Creekridge Adds 17 New Vendors Q1/11 to Q3/11 Within the first three quarters of 2011, Creekridge Capital added 17 new vendors to its list of contractual vendor partners, with several more partnerships in the works. Its new vendor partners range from mid-size domestic to very large, well-known multinational companies.

Developed with IDEO and salesforce.com, the new platform is designed to address the specific needs of middle-market firms helping facilitate economic growth.

GE Capital Debuts Digital Platform for Middle-Market GE Capital unveiled an integrated Web portal and private social network, called GE Edge, that will enable middle-market companies to access academic and business subject matter experts, proprietary research and analysis and a peer-to-peer discussion of the relevant challenges facing businesses.

Envision Adds Financing for Small Business Envision Capital announced new equipment leasing and financing programs for small business owners including seasonal payments, deferred payments, step-down and step-up payments and master lease lines.

Aroway Energy Names Ex-GE Capital Exec to Board Aroway Energy appointed Mike K. Veldhuis to its board of directors. Veldhuis assisted both private and public companies in structuring and obtaining debt and equity facilities since

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