Small businesses are facing the most difficult business climate in three years, according to a report released today.
Among the most troubling signs: Four out of every 10 small business owners are unable to secure adequate financing, according to the National Small Business Association’s mid-year economic report.
Indeed, it has been 17 years since this many small businesses have had such a difficult time getting loans, said Todd McCracken, president of the Washington D.C.-based organization.
“Given the direct correlation between access to capital and job growth, unless small-business owners are able to secure financing, we will continue to see high unemployment, ” said McCracken.
In the last 12 months, 11 percent of small businesses hired workers and 25 percent cut jobs, the report said.
Six months ago, the organization measured a slight increase in optimism among small business owners. But in the latest survey, conducted among 400 small business owners between June 23 and July 14, nearly every indicator fell including business confidence, revenue, job growth and growth projections.
“These traditionally-upbeat entrepreneurs have a far-more negative outlook today than they have in the last several years,” the report said. Nearly half do not believe there will be any growth opportunities for their business in the coming year and 41 percent have concerns about the ongoing viability of their business.
Likewise, 59 percent of small-business owners expect the U.S. economy to remain flat this year and 29 percent anticipate a recession.
Folks, this is what happens when you send a bunch of community organizers, Liberals, and other fiscally irresponsible types to Washington.
Tom,
You are mis-informed. This has nothing to do with Obama. Most of his policies have not yet been made law. The recession and lack of small business financing options started with Bush and the policies of the Bush administration. Bush was fiscally irresponsible and you are wrong. Quit blaming Obama and go do something beneficial for your community.
Folks – this is what happens when you let conservatives run the country for so long. Years later you pay the price.
One can hardly fail to be impressed by the Big Big Bankers, now so very prudent in their loan policies and most diligent in lending to those “risky” small businesses. Odd though, the Money Changers could hardly shovel the cash out the door fast enough during the flakey mort-gage stampede prior to the implosion of New Economy #3. Unfortuneate that they weren’t nearly so careful with the ratings of those collateralized debt obligations, securitized derivatives, credit default swaps and similar financial devices whose real value (then and now)was so much chaff in the wind.
What I keep hearing through the media is that the problem with small business in this country is the lack of access to capital or credit. As a small business owner, I don’t want or need to go into debt any further, then I would be operating my business like a government entity. I need customers, not loans. My customers are scared to death to spend money because they fear this economy. As to the partisan bickering above, my view is that pretty much every government organization that I come into contact with is fiscally irresponsible and only seems to be interested in holding or gaining office and patronage/deals/contracts that benefit them. The public pensions in this country are one of it’s biggest scams.
The political “experts” say otherwise, but I’m still convinced that this will be a double-dip recession. We’ve only been through the first one so far. Even Bernanke admits we’re on very shaky ground.
In a double-dip recession, the second dip is ALWAYS worse than the first. Big business believes it’s coming; that’s one reason they’re sitting on their cash. After the second dip hits, they’ll go bargain hunting for near bankrupt companies to purchase.
Democrats have ruined this country. They have socialized it and created an entitlement society with no reasonable way to pay for any of the programs that have been put into law. The country is bankrupt when you have to borrow to fund interest in your debt. You liberal fools that blame bush conveniently forget that congress has been firmly in control by liberal democrats since 2006. Stop blaming bush and look the mirror and accept responsibility for your failures. Oh and thanks for ruining our society; sucks to be a society of laws telling you everything you can and can’t do. Lawyers and unions suck.
Oh good god – this is so not Bush’s fault – give it a rest already! This is all Obama and is anti-business team and stance. Did you see the markets go way up last week when a few Dems came forward saying the tax cuts should be kept in place? I own a business and the money comes into my personal taxes – I talk to biz owners every day – they are terrified of what Obama will do next! I completely agree with Trainwreck – the pensions and salaries of the public employees is the biggest scam ever!!!! We, the taxpayers and those that take risks are supposed to provide cushy retirements for the govt employees in their big easy chairs!