The Pepperdine Private Capital Access Index and business information company Dun & Bradstreet, have released a report detailing the success of California small businesses in comparison to small businesses nationwide.
The report details how "California’s small businesses stack up against the national average for accessing capital," according to a release from Dun & Bradstreet.
Released for the first time in 2012, the quarterly index seeks to gauge the financial demands of small businesses as well as their ability to access private capital.
The data, which focuses on the growth and access to loans, highlights the improvement in the percentage of Californian small businesses that are experiencing success.
The potential for growth in California's small businesses is above the national average in several categories. For example, projections for the next six months show more California businesses planning to hire and raise financing compared to their counterparts in other states. More California businesses are also expected to need financing due to planned growth.
Despite leading the nation in growth, California's small businesses are experiencing a feeling of restriction from the current business environment, compared to their less-successful national counterparts.
Despite leading the nation in growth, California's small businesses feel that they are in a more restrictive businesses environment than businesses in other states, according to the report.
Many California small businesses who applied for loans in the first quarter of 2015 were not approved.
"In Q1 2015, over a third of California small businesses fell into the pit of personal assets" due to the disparity between the 51% of businesses seeking bank loans, and the 36% who actually receive them, reads the report.
The index, which is released quarterly, measures both the demand and the accessibility of capital among small businesses nationwide. In addition, it measures the efficiency and transparency of private financing markets.