The latest available U.S Small Business Administration statistics show that there are well over 150,000 small businesses (those that employ under 500 workers) operating in New Mexico accounting for roughly 96 percent of all businesses and employing about 56 percent of the state’s private workforce.
Nationwide, small businesses are responsible for over 60 percent of the net new private sector jobs and employ nearly half of America’s workforce. With a population of just over 2 million, it’s clear that small business owners in New Mexico continue to play a critical role when it comes to the state’s overall economic future.
That said, what are some of the challenges facing this dedicated group of small business owners?
According to a recent survey of 1,679 small businesses affiliated with the “10,000 Businesses” program, there are four primary concerns that small business owners often face in sustaining and growing their businesses access to capital, the regulatory environment, the workforce and technology.
• Access to capital: Those surveyed overwhelmingly relied on traditional lending sources but were often limited in their ability to borrow by the current market constraints facing these financial institutions. The report emphasizes the importance of educating small business owners regarding the variety of lending sources, models, and financing products available. This would greatly enhance the ability of owners to select the right sources of capital to meet their business needs and stimulate growth.
• Regulatory environment: Nearly 60 percent of the respondents shared that they have experienced varying degrees of difficulty navigating their way through the current regulatory environment.