More than half of 544 small businesses surveyed by the Federal Reserve Bank of New York said cutting costs remains their most important strategic consideration, slightly ahead of attentiveness to clients.
Products and services were a distant third, with 37 percent of businesses citing that as their most critical area of focus, followed by productivity at 28 percent and reducing debt at 24 percent.
Access to capital was the biggest barrier to growth for 36 percent of small businesses surveyed by the Fed, followed by talent at 17 percent and governmental regulations at 14 percent.
More than 40 percent of business owners said banks are “not lending to their type of business,” the Fed survey states, with 28 percent blaming troubles securing credit due to insufficient collateral, 25 percent to a low credit score and 23 percent to weak sales during the past few years.
Among those discouraged from seeking loans or unable to secure a line of credit, most were making ends meet either through earnings or by tapping their personal assets.
The poll reflects responses from nearly 550 small business owners surveyed in April and May. Half of those surveyed are located in New York City, while about 15 are based in Fairfield County, which is the lone New England territory not under the jurisdiction of the Federal Reserve Bank of Boston.
Businesses responding typically have 10 or fewer employees, and nearly half had revenue under $250,000 last year.
