A new survey by the University of Nevada’s Small Business Development Center highlights the persistent challenges faced by small businesses across the state with funding and economic pressures emerging as the biggest hurdles. The survey collected responses from 889 businesses statewide.

“Businesses continue to face some of the same challenges as in 2024: finding new customers, managing business growth, securing funding and handling cash flow,” said Winnie Dowling, the center’s director. “Adapting to inflation is still a major challenge, though less critical than in 2023 except for rural Nevada business owners where inflation remains a primary concern.”

For startups, securing funding remains the biggest obstacle with 70% of pre-revenue businesses identifying it as their top challenge. Established businesses, however, reported finding new customers as their primary issue, with 47% citing it as their main concern.

Among businesses that applied for loans in the past year, only 39% received the full amount requested. An additional 28% secured partial funding while 32% were denied altogether.

Traditional banks remain the most common source of financing with 61% of applicants turning to these institutions. However, alternative options are gaining traction with 31% seeking loans from friends or family.

Hispanic-owned businesses reported managing business growth as their biggest challenge with 49% identifying it as a top concern—significantly higher than the overall average of 31%. Meanwhile, 47% of women-owned businesses identified finding new customers as their top issue, down slightly from 51% in the previous year’s survey.

Rural businesses face unique challenges with 59% struggling to navigate government regulations and compliance requirements.

Now in its third year, the survey continues to provide valuable insights into the obstacles facing Nevada’s small business community.

Read the survey here: https://nevadasbdc.org/wp-content/uploads/2024/11/2024NevadaSmallBusinessChallengesSurvey.pdf

Source: SBDC/UNR