Showing posts with label small business and credit. Show all posts
Showing posts with label small business and credit. Show all posts
Thursday, May 10, 2012
Latest Report on Small Business Credit
Access to credit has been a tough issue for many small businesses for nearly four years now. Credit issues, along with a host of costs and uncertainties on the policy front, have played key roles in our long economic troubles.
So, what are small businesses expecting on credit as they look ahead?
The Wells Fargo/Gallup Small Business Index, with the latest edition out on April 30, pointed to general small business optimism being at the highest level since July 2008. At the same time, the small business optimism index level still remained at a fraction of the levels registered in, for example, late 2006.
But what about the credit issue? The survey asked about both current and future expectations on credit.
On the question – “Over the past 12 months, how difficult or easy was it for your company to obtain credit when you needed it?” – 30 percent of small business owners said is was very/somewhat difficult, with 22 percent saying very/somewhat easy. That 30 percent is a slight improvement compared to the last two-plus years, but still far above the levels that prevailed prior to late 2008.
Looking ahead – “Over the next 12 months, how difficult or easy do you think it will be for your company to obtain credit when you need it?” – expectations improved compared to where the outlook was over the past three years. Thirty-two percent said very/somewhat difficult compared to 25 percent saying very/somewhat easy.
To sum up, small business owners are still not in an optimistic position on credit. Instead, they’re less pessimistic than where they have been. That is, the outlook is improving, but remains negative.
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Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. His new book is “Chuck” vs. the Business World: Business Tips on TV.
Wednesday, November 19, 2008
The Entrepreneur: Creator of Wealth, and Social Justice
The first World Entrepreneurship Forum was held November 13-15 in Evian, France. As a member of the first global think tank dedicated to entrepreneurship, I am excited about this new initiative. After all, if political leaders and larger corporations can have their annual global gatherings, why shouldn’t entrepreneurs? On a global basis, we are responsible for the bulk of wealth creation, new jobs, innovation, and remain the best hope for easing the world out of its current economic woes.
It seems that excessive time and resources are being spent on cleaning up the messes of larger companies and institutions. While work and reforms are certainly needed to bring stability to our financial systems, markets and economy, politicians and existing institutions seem to be overly focused on the wrong targets. At the World Entrepreneurship Forum, there was no bitterness or whining about this current state of affairs – only optimism and solutions. Our job was to develop a common agenda – an actionable list of recommendations – to accelerate global entrepreneurship. And that we did.
While we are fine-tuning the wording of this list of twelve recommendations, the general themes focus on building a more enabling environment – from education to government policies; improving support institutions, and increasing a cultural appreciation for entrepreneurs; and creating an inclusive framework to expose entrepreneurship as an option to more women, minorities and disadvantage groups.
Indeed, enabling business start-ups and entrepreneurship is critical to the economic future of our globe. But the entrepreneur, quite naturally, is a creator of social justice. Their innovations have greatly improved the lives of people around the world; their wealth-building capacity has lead to a better way of life and economic opportunity for untold millions; and their passion is unmatched for giving back to their communities, their causes and their countries.
Upon return from the forum, I stumbled upon an “open letter” on the business wires written by Philip Verges, Founder and CEO, NewMarket Technology Inc. While the letter was directed to “Fellow Shareholders and Small Equity Investors” its message certainly is one that needs to be read by political, social, education and business leaders.
In essence, Mr. Verges believes that the current global economic situation is an opportunity to “bring attention to a long overlooked business sector – a business sector that happens to account for the majority of economic activity around the world with historically little attention from Wall Street.” Of course, this would be the small business and entrepreneurial sector.
In his letter, Mr. Verges writes that he is optimistic that “this previously overlooked business sector will finally get the attention it deserves as institutions search for strength in the market.”
The letter is quite deep and thoughtful. (I hope he puts it on his company’s website as I only have a printed copy.) He concludes that “a new Wall Street” that emerges from the financial crises will do so “with a new appreciation for investment in the small businesses filling the gaps in the continuing market segmentation and the ongoing production fragmentation.”
According to Mr. Verges, “all of us share a vested interest in an improved investment environment surrounding the small business community.” He is confident that small firms will benefit in the new era.
Entrepreneurs are the solution to the global economic crises. This is the message from members of the World Entrepreneurship Forum. It certainly is the belief of thoughtful CEOs such as Philip Verges.
Karen Kerrigan
President & CEO
It seems that excessive time and resources are being spent on cleaning up the messes of larger companies and institutions. While work and reforms are certainly needed to bring stability to our financial systems, markets and economy, politicians and existing institutions seem to be overly focused on the wrong targets. At the World Entrepreneurship Forum, there was no bitterness or whining about this current state of affairs – only optimism and solutions. Our job was to develop a common agenda – an actionable list of recommendations – to accelerate global entrepreneurship. And that we did.
While we are fine-tuning the wording of this list of twelve recommendations, the general themes focus on building a more enabling environment – from education to government policies; improving support institutions, and increasing a cultural appreciation for entrepreneurs; and creating an inclusive framework to expose entrepreneurship as an option to more women, minorities and disadvantage groups.
Indeed, enabling business start-ups and entrepreneurship is critical to the economic future of our globe. But the entrepreneur, quite naturally, is a creator of social justice. Their innovations have greatly improved the lives of people around the world; their wealth-building capacity has lead to a better way of life and economic opportunity for untold millions; and their passion is unmatched for giving back to their communities, their causes and their countries.
Upon return from the forum, I stumbled upon an “open letter” on the business wires written by Philip Verges, Founder and CEO, NewMarket Technology Inc. While the letter was directed to “Fellow Shareholders and Small Equity Investors” its message certainly is one that needs to be read by political, social, education and business leaders.
In essence, Mr. Verges believes that the current global economic situation is an opportunity to “bring attention to a long overlooked business sector – a business sector that happens to account for the majority of economic activity around the world with historically little attention from Wall Street.” Of course, this would be the small business and entrepreneurial sector.
In his letter, Mr. Verges writes that he is optimistic that “this previously overlooked business sector will finally get the attention it deserves as institutions search for strength in the market.”
The letter is quite deep and thoughtful. (I hope he puts it on his company’s website as I only have a printed copy.) He concludes that “a new Wall Street” that emerges from the financial crises will do so “with a new appreciation for investment in the small businesses filling the gaps in the continuing market segmentation and the ongoing production fragmentation.”
According to Mr. Verges, “all of us share a vested interest in an improved investment environment surrounding the small business community.” He is confident that small firms will benefit in the new era.
Entrepreneurs are the solution to the global economic crises. This is the message from members of the World Entrepreneurship Forum. It certainly is the belief of thoughtful CEOs such as Philip Verges.
Karen Kerrigan
President & CEO
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