Dun & Bradstreet Credibility, Pepperdine University: Q4 Study Indicates
Greater Demand for Capital Among Smallest US Businesses
Mid-sized businesses show decreased capital demands; Smallest businesses
SEATTLE -- November 12, 2013
The nation’s smallest businesses reported a greater interest in accessing
capital during Q4 to expand their business, a signal that they are optimistic
about market conditions and their growth potential leading into 2014.
In contrast, mid-sized US businesses trimmed their demand for capital for a
fifth straight quarter, an indicator that business growth conditions favor
smaller businesses over mid-sized US companies.
The results are part of the most recent Pepperdine Private Capital Access
(PCA) Index report, a survey produced quarterly by Pepperdine University's
Graziadio School of Business and Management in partnership with Dun &
Bradstreet Credibility Corp.
The Private Capital Demand (PCD) Index, which aggregates data from both small
and mid-sized businesses, increased for the first time since early 2013,
buoyed by smaller companies that expressed a stronger late-year interest in
obtaining financing. The overall number indicates the environment for lending
has rebounded to its position at the start of 2013, reversing losses
experienced during the third quarter.
“The Q4 Private Capital Demand Index demonstrates that small businesses are
not only confident, but also ready to turn that confidence into action,” said
Jeff Stibel, Chairman and CEO, Dun & Bradstreet Credibility Corp.“What’s
important is that the smallest companies are still expressing interest in
lending, even during a period where the government shutdown instilled a sense
of unease. It demonstrates that they are resilient and optimistic about future
“Despite the dip in demand among mid-sized companies, this study still
indicates an important level of stability,” said Craig R. Everett, PhD.,
director of the Pepperdine Private Capital Markets Project at the Graziadio
School of Business and Management. “It’s very encouraging to see growth in
demand, particularly among small businesses, especially since we saw that
demand significantly contract after 2012. Demand for capital in the private
sector, coupled with access to that capital, are fundamental drivers of
The study defines a small business as those having $5 million or less in
annual revenue, whereas a mid-sized business has between $5 million and $100
million in annual revenue.
About the Pepperdine Private Capital Markets Project
The Pepperdine Private Capital Markets Project seeks to understand the true
cost of private capital and the investment expectations of private business
owners; providing lenders, investors and the businesses that depend on them
with critical data to make optimal investment and financing decisions. The
Project's small business owner surveys draw their sample from a database of
businesses maintained by the Dun & Bradstreet Credibility Corp., research
partners for the Pepperdine PCA Index Quarterly Reports. Reports and more
information are available at http://bschool.pepperdine.edu/privatecapital.
About Dun & Bradstreet Credibility Corp.
Dun & Bradstreet Credibility Corp. is the leading provider of credit building
and credibility solutions for businesses. The company helps businesses
establish their credit with a D&B D-U-N-S(R) Number and provides the only
business credit solution available to companies looking to build, monitor, and
impact their business credit and credibility. The company's headquarters are
in Los Angeles, CA with offices throughout the United States. For more
information on the company, please visit www.DandB.com or follow the company
on Twitter via @DandB.
About Pepperdine University Graziadio School of Business and Management
Founded on the core values of integrity, stewardship, courage, and compassion,
Pepperdine University's Graziadio (GRAT-ZEE-ah-DEE-oh) School of Business and
Management has been developing values-centered leaders and advancing
responsible business practice since 1969. Student-focused, experience-driven,
and globally-oriented, the Graziadio School offers fully accredited MBA,
Masters of Science, and bachelor's completion business programs. More
information found at http://bschool.pepperdine.edu/newsroom/.
Aaron Kellogg, 617-275-6526
Dun & Bradstreet Credibility Corp.
Liz Gengl, 310-919-2266
Pepperdine University Graziadio School of Business and Management
Douglass Gore, 310-568-5580
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