RENO – The Nevada Small Business Development Center (SBDC) released this month its 2022 Small Business Challenges Survey. The results showed that entrepreneurs interested in starting a small business in Nevada face significant challenges in securing debt and venture financing, as well as have difficulty in developing their businesses, such as creating a business plan and marketing strategy.
Of the 225 respondents looking to start a small business or a scalable startup, 58% claimed that securing financing is one of the top three challenges they encountered while attempting to start their business in Nevada. When it comes to developing a business strategy, 54% of those same respondents said that creating a business plan and/or comprehensive marketing strategy posed a significant challenge to the success of their small business.
“Unfortunately, capital funding continues to be elusive for businesses in Nevada,” said Winnie Dowling, Nevada SBDC state director.
The survey was a partnership effort through the Nevada SBDC, the Governor’s Office of Economic Development (GOED) and Nevada’s chambers of commerce, development authorities and economic development partners. Responses were captured in July and August of 2022.
The survey results also showed that existing businesses have been affected by inflation and rising energy costs. Nearly 50% of the 486 existing business respondents claimed that inflation was a significant challenge, and 47% said that developing a business expansion plan and finding new customers posed an issue. Other challenges included hiring and retaining employees and navigating government regulations.
More than two years after the start of the global COVID-19 pandemic, these survey results show that Nevada small businesses owners have moved beyond the pandemic fallout and are now focused on adapting to the post-pandemic challenges of inflation, employee attraction and retention, and business growth in an unsettled economy.
The Nevada SBDC, hosted by the College of Business at the University of Nevada, Reno and supported by the U.S. Small Business Administration, has offered no-cost and confidential professional advising services to Nevada small businesses since 1985. Nevada SBDC clients are advised by professionals who utilize their educational and business experience to provide practical, relevant advice to small business owners and prospective small business owners.