That’s according to The Federal Reserve Bank of New York’s 2016 Small Business Credit Survey: Report on Startup Firms. The report examines the results of an annual survey of small business owners with a focus on startup firms — defined as small businesses that were five-years-old or younger and had full- or part-time employees in 2016.

These findings are particularly salient for the U.S. macroeconomy because startups account for 34% of all U.S. employer firms, for nearly all net new job creation and for almost 20% of gross job creation—according to outside research as of 2014.

“Startups are the primary drivers of U.S. job growth and their success is essential to a healthy economy,” said Claire Kramer Mills, assistant vice president and community affairs officer. “Although financing is important for all companies, it’s especially critical to these young firms who need funds to weather initial costs and grow. Despite startups’ strong demand for financing, their problems are more acute than other firms, with most facing shortfalls and many discouraged from even applying.”

Key findings can be found in the Report on Startup Firms’ executive summary. These findings include:

Performance and expectations

Financing Demand and Challenges

Financing Sources, Success and Satisfaction

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