A survey from Pepperdine University’s Graziadio School of Business and Management shows small companies (less than $5 million in revenue) believe the overall U.S. economy will continue to be sluggish, posting 1.87% Gross Domestic Product (G.D.P.) growth over the next twelve months. Larger companies ($100+ million in annual revenue) have a slightly rosier picture forecasting a 2.14% increase to G.D.P. in 2011.

In total, the survey among 1,224 privately-held businesses, capital suppliers, intermediaries, and service providers collected from online surveys January 3-11, 2011, forecast a 1.98% increase in G.D.P. in 2011. The study also found U.S.-based companies are more optimistic of the overall economy suggesting G.D.P. growth of 2.06% over the next 12 months. Conversely, non-U.S. companies had a more negative view of the U.S. economy suggesting a 1.69% increase in G.D.P. These findings are part of data released from the Pepperdine Private Capital Markets Project, an investigation of the major private capital markets that examines the current state and outlook for the private capital industry.

The study comes in advance of G.D.P. data to be released by the Federal Reserve on Monday, January 17. Last month, the Federal Reserve’s G.D.P. final revised forecast for the 3rd quarter was 2.6%. Earlier in 2010, U.S. G.D.P. had dipped below 2%. Federal Reserve officials have said recently they expect G.D.P. growth in 2011 could be as high as 4%.

“Private businesses and private capital providers, a major influence in the U.S. economy, are not as optimistic as some Fed officials,” said Dr. John Paglia, lead researcher of the Private Capital Markets Project and associate professor of finance at Pepperdine University’s Graziadio School of Business and Management. “I would love to see stronger G.D.P. numbers but fear private businesses, lenders, and investors, who are looking at their business in real-time, are probably a more accurate gauge.”

According to those surveyed 35% felt the largest impediment to U.S. G.D.P. growth was the uncertain economic environment and low demand. This was followed closely by government regulations (25.9%) and limited access to capital (22.7%). However, privately-held businesses indicated that limited access to capital (31.5%) was the largest impediment to U.S. G.D.P. growth.

With over 99% of companies having fewer than 500 employees, our economy is dependent upon the success of small businesses. The Pepperdine Private Capital Markets Project is a critical step along the path of understanding and increasing the value of private companies and our economy. Professionals who work in the lending or investment arenas either for an institution or a specific fund are excellent bellwethers of what is ahead for other businesses and consumers. Through two survey cycles and published summary reports per year, lenders, investors and the businesses that depend on them will be able to make optimal investment and financing decisions, and better determine where the opportunities to create lasting economic value may be realized.