Exploring Successful Strategies for Small Business Owners’ Access to Financing

Considered the drivers of innovations and the engine of the economy, small and medium enterprises (SMEs) represent 99% of U.S. firms. However, nearly 80% of SMEs fail in their 1st year of operation, causing substantial financial hardship to the small business owners and significant loss of tax revenues to local and federal governments. Grounded in the theory of planned behavior, the purpose of this qualitative, pragmatic inquiry was to explore successful strategies that some small business owners use to gain access to financing for their businesses. The participants comprised six small business owners in Norfolk County, Massachusetts, United States, who successfully implemented strategies to access business financing. Data were collected using semistructured interviews. Three themes emerged through thematic analysis: (a) focusing on business needs, (b) leveraging the lender relationship, and (c) taking full advantage of outside advisors. A key recommendation is for small business owners to prioritize the organization, accuracy, and availability of their business’s documentation, ensuring the timely submission of a complete loan package to support their requests for business financing. Implications for positive social change include the potential to increase the approved rate of SMEs’ business loan applications, reduce SMEs' failure rate, and bring about significant societal benefits, such as creating more jobs, increasing tax revenues for the states, and strengthening communities.