Entrepreneurs interested in starting a small business in Nevada face significant challenges, the 2022 Small Business Challenges Survey found.
The survey from the Nevada Small Business Development Center was released earlier this month. The survey found entrepreneurs also face 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 percent 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 percent 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. “While this is nothing new, it puts startups in the uncomfortable position of paying a lot more to get up and running, especially in our underserved communities. Knowing what businesses need is important to everyone.”
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.
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.
“This survey produced critical data which will inform and support GOED’s SSBCI-Technical Assistance application for which we will collaborate with the Nevada SBDC,” said Karsten Heise, senior director of Strategic Programs & Innovation at GOED. “It will help with the design of a data driven approach for a program structure and service provision offering technical assistance to socially and economically disadvantaged individuals and very small businesses.”
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.
Advising services include marketing, accounting and record keeping, loan applications, new business start-up, capital formation, technology development assistance, business planning and more. Ninety-eight percent of all firms in Nevada are considered small businesses and therefore qualify for Nevada SBDC advising services.
To request no-cost, confidential small business advising from the Nevada SBDC, visit nevadasbdc.org.