A disturbing new report from the Federal Reserve Bank of Dallas says for the first time since the Dallas Fed began surveying Texas small businesses, access to capital is the biggest challenge facing small business owners, News Radio 1200 WOAI reports.
"Failing to get enough capital can seriously restrict the growth of a small business, prventing it from expansing and reaching the next stage," Emily Perlmeter, Dallas Fed community development analyst, told News Radio 1200 WOAI.
What has consistently been the biggest challenge facing Texas small businesses, finding the right employees, has fallen to second place in the study. In third place was obtaining employees who are punctual and reliable.
Sales and marketing was once again the most sought-after skill for potential employees, followed by interpersonal skills. Punctuality and reliability was ranked as the most difficult to find among prospective employees.
But the sudden lack of access to capital concerns Perlmeter, especially since women and minority small business owners, who are rapidly becoming the majority in Texas, feel the pinch most acutely.
"This is a concern for all small businesses, but is especially pronounced for minority and women business owners," she said. "There is a perception among many minority and women business owners that they may be turned down or face bias in the marketplace, which leads them, in many cases, to not even apply for capital."
Free flow of operating capital is critical for any small business, and a lack of business capital can destroy an economy.