What’s Really Holding Back Growth?

By Lisane Basquiat, Hera Hub Carlsbad Owner

Do you consider funding to be a tool to support the growth of your business?

Many entrepreneurs believe that lack of funding is the biggest barrier standing in the way of their business goals. But a new report by Gallup, JPMorgan Chase, and the Kauffman Foundation (Scaling to One Million: The Complicated Role of Capital, 2025) offers a different perspective — one that’s especially relevant to small business owners.

The report looks at what is preventing people from starting and growing businesses — and what actually supports sustainable growth. It is full of significant insights for solopreneurs, early-stage founders, and anyone working to build something strong and lasting, especially women founders who are navigating these barriers with fewer resources and less access.

Here are three takeaways worth your attention:

1. Most business owners don’t seek funding — but the ones who scale do.

Almost half of non-business owners name lack of capital as a reason for not launching a business. But among those who have launched, only 10% sought funding in the past year. That number jumps to 24% among owners who have hired at least one person.

Translation: If you’re building a business of one, you might not feel the need to raise capital. But if you’re planning to grow, getting comfortable with the idea of funding (and how to access it) is worth your consideration.

2. Your credit matters more than you might think.

Strong credit history is tied to better access to capital, higher revenue, and better margins. Founders with excellent credit earn five times more revenue than those with poor credit. If you’ve been avoiding this part of your financial picture, now is a good time to take a closer look. It’s not about perfection; it’s about positioning yourself and your business for growth for when you are ready.

For women founders, this is especially important. The report shows that female entrepreneurs are more likely to be in the “nonemployer” category (solo businesses) and more likely to have limited access to capital, often because of credit challenges, less access to financial guidance, or reluctance to take on debt.

Translation: Understanding and managing credit is a foundational growth strategy.

3. Local support works — but most business owners aren’t using it.

Whether it’s a grant, a pitch event, or a well-timed introduction, local support leads to measurable revenue growth. But only a small group of entrepreneurs actually tap into it. It’s a real shame because these locally-rooted resources are often specifically designed to address the unique challenges and opportunities within the community.

This is a reminder: Communities like Hera Hub exist to give you access to the people, resources, and opportunities that help you grow. You don’t have to figure it out alone.

• More women run solo businesses — not because of lack of ambition, but because of structural barriers to funding and support.
• Debt aversion is higher among women — often driven by lived experience or mistrust of traditional financial institutions.
• Women benefit significantly from local entrepreneurial support — yet many don’t tap into it.