Tag: Venture Capital
Sources of Working Capital a Top Challenge for Companies
Securing reliable working capital in sufficient amounts is usually the top business challenge today for companies with revenues of $2–200 million. Viewed from a macro level, working capital constriction for this group of companies is a significant problem for the U.S. economy as a whole. Businesses of $2–200 million in revenue account for roughly two-thirds of private sector workers and 45% of business revenues in the U.S. according to U.S. Census data, yet less than 5% of capital markets activity is devoted to funding them, leaving a substantial financing gap. And that gap has only increased during the global financial crisis, which has further restricted access to capital — which has increased the risk of becoming unsustainable for some businesses.
Continue reading “Sources of Working Capital a Top Challenge for Companies”