Small Business Sputters

from 24/7WallStreet:



Small Business Sputters
Posted: March 6, 2012 at 6:28 am


Small business is supposed to be the most important engine of the jobs market. Many economists believe that companies with fewer than 20 workers account for more than half of all U.S. jobs. The small business sector has been troubled by a lack of credit since the recession began. Small companies often cannot get loans from banks that are worried about their own balance sheet risks.

New information about small business employment activity shows that it is unlikely to help lift the jobs market from the current high national unemployment level, which could stay above 8% until the end of this year or beyond. Intuit’s carefully followed Small Business Employment Index indicated that small business employment grew only 0.2% in February, or about 45,000 new jobs. These figures are not comparable to federal data because the samples and research methods are different. Federal data shows overall job additions are about 170,000 a month. But, if the Intuit data is directionally correct, the small business sector jobs market has lagged.

The other part of the Intuit data that is troubling is that:

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The complete piece is at: http://247wallst.com/2012/03/06/small-business-sputters/#ixzz1oLaOSlH2