Fundica’s 2023 Small Business Survey of Financial Institutions

In an effort to understand the intricate challenges faced by small business owners and their expectations of financial institutions (FIs), we surveyed 820 entrepreneurs in collaboration with several financial institutions and entrepreneur-support organizations. Of these respondents, 43% founded their business in 2020 or later. 71% of respondents identify as part of an underrepresented group.

Below, we assess what our data means for Fundica and financial institutions that want to become irreplaceable partners to their small business clients. For a more comprehensive look at our survey data, view our infographic.

Challenges in Access to Funding

Many survey respondents, especially those from underserved groups, are not benefitting from funding opportunities targeted towards their business demographic. This is likely because business owners are either unaware of the existence of relevant funding for their business, or uncertain of how to navigate the funding landscape to find and apply for those funding programs.

What is the biggest challenge for small business owners?

Our findings bring to light a notable concern: many small and medium-sized business owners, particularly those from underrepresented backgrounds, are struggling to receive funding. In fact, this is a growing concern; the percentage of respondents that selected “Securing Funding” has grown 20% since last year’s survey. In response to these challenges, Fundica offers a practical solution. Our up-to-date funding search engine features a robust filtering system and matching algorithm, addressing the foremost hurdle faced by respondents in securing funding: identifying the most relevant funding opportunities.

The Role of Financial Institutions

What do small business owners value most in an FI?

Small business owners greatly prioritize support from knowledgeable and invested advisors. How then can FIs offer the best possible SMB advising service?

Financial institution clients should consider integrating their financial advisory support with Fundica’s funding search engine. By enabling financial advisors to assist business owners in applying for funding programs discovered through Fundica, FIs can foster positive relationships and convert entrepreneurs into loyal clients.

Gaining a Competitive Edge

The integration of Fundica’s funding search technologies gives financial institutions a distinct advantage over their competitors. It positions them as comprehensive funding advisors, attracting and acquiring business clients from other banking institutions and accelerating growth.

Where do small business owners currently look for funding?

Low adoption of funding search technologies like Fundica by survey respondents presents a unique opportunity for entrepreneur-supporting organizations (ESOs), like financial institutions, to improve their service offering by integrating funding search engines into their websites. With a funding search tool like Fundica, ESOs can help small and medium-sized business owners find relevant funding, fostering positive relationships, and potentially converting them into business clients.

Real Results with Fundica

Fundica is highly recommended by its users, demonstrating confidence in the tool’s efficacy in helping business owners find the best funding options. The intuitive Fundica solution streamlines the funding search process for businesses of all kinds, enhancing accessibility and ease.

Fundica’s 2023 Small Business Survey offers a clear picture of the funding challenges faced by small business owners. Through practical solutions and collaborative efforts, we strive to bridge the gap and empower businesses to access the funding they need for growth.

View and download our survey infographic here.

Want to see how opinions have changed since last year? Check out our 2022 survey.