The annual Small Business Credit Survey (SBCS), conducted by the 12 Federal Reserve Banks, gathers vital national data from both employer and nonemployer firms. This survey provides crucial insights into business conditions, credit access, and the demographic profiles of businesses and their owners. The Florida SBDC Network proudly collaborates with the Federal Reserve and other organizations nationwide to facilitate this important initiative.
Each year, the Florida SBDC Network plays a crucial role in gathering employer responses for the SBCS. Our clients consistently represent a significant portion of the data, accounting for 61% of the statewide sample and 5.4% of the national employer firm sample. In fact, we facilitate participation from significantly more employers than typically seen in the overall Florida or national samples.
The Federal Reserve further enhances these insights by publishing research chartbooks for states and metropolitan areas with sufficient responses, including Florida, Miami, and Tampa.
Key Insights from Florida SBDC Clients
While the Florida SBDC works with a higher volume of employer firms, our clients often differ from state and national averages. They tend to be younger, have smaller revenues, and are more frequently home-based businesses.
Interestingly, our clients' financing application rates were lower than the state average. However, Florida SBDC firms were 1.2 times more likely to be denied financing than the national employer firm average, despite their strong representation in the survey. This highlights a critical role for the Florida SBDC Network: we dedicate significant time to preparing newer and smaller clients for credit seeking when they're ready to expand or invest. Our one-on-one consultations often cover essential topics like financial literacy, cash flow analysis, and strategies for becoming "bankable."
In response to financial challenges, Florida SBDC firms reported raising prices less frequently than the national average, potentially indicating a perceived inability to pass on costs without losing customers. Furthermore, our SBDC clients were less inclined to take on new debt compared to state or national averages, often opting to invest personal funds into their businesses to maintain operations.
Using SBCS Data
The Florida SBDC Network is deeply committed to being a data-driven organization. Each year, the Network evaluates the data to ensure that we have objective information about our client’s challenges and opportunities. We tailor training programs to better serve our clients - including lending round tables, general access to capital training, and a breakout session track at our signature statewide event, the Small Business Success Summit.
We encourage our partners to delve into the Federal Reserve's employer firms study and explore the valuable statewide and metro chartbooks. Together, we can utilize these insights to further strengthen our small business ecosystems.
Written by:
Amy Newburn
Research & Data Analyst Director
Florida SBDC Network State Office
