Small Business Despairs, Despite Rumors Of A Recovery

from 24/7WallStreet:




Small Business Despairs, Despite Rumors Of A Recovery
Posted: August 3, 2010 at 5:54 am


The government and most economists say that the recession is over. It ended late last year, in fact. Several recent polls of consumers show that the average American believes that the recession is still going on. He cannot get credit to buy a new car or TV. His brother and his neighbor are out of work. Someone he knows has reached the limit of 99 weeks of unemployment benefits. That “someone” does not have a place to live anymore.

Small businesses look at the world, apparently, like the average US citizen does. Credit is remarkably tight. Hiring is close to zero.

A new Gallup poll shows that “The Wells Fargo/Gallup Small Business Index — which measures small-business owners’ perceptions of six measures of their current operating environment and future expectations — fell 17 points to -28 in July. This is its lowest level since the index’s inception in August 2003.”

That means that small businesses see almost no hope for a recovery this year. Small businesses are still considered a prime growth engine of the economy. The SBA claims that small businesses have generated 60 to 80 percent of net new jobs annually over the last decade. There is no economic recovery without these enterprises staying healthy.The Gallup figures are even worse when they are looked at in detail:



And, there is little reason for the numbers to improve soon. Federal statistics continue to show banks will not lend to small businesses, and the loans that are made usually are equal to an amount that it is no higher than the money that the borrower has in the bank. That sort of loan does not seem terribly valuable. ............(more)

The complete piece is at: http://247wallst.com/2010/08/03/small-business-despairs-despite-rumors-of-a-recovery/

will be replaced by small business jobs - whether through growth or entrepreneurship.

That is where a large percentage of the stimulus funds should have gone.

So how they gonna lend when things really do look better?

I sent it to her so maybe she'll stop thinking it was something she's done to screw up the business.

A heads up for small businesses.

http://www.time.com/time/business/article/0%2C8599%2C1865467%2C00.html?xid=feed-yahoo-biztech

Movements here but barter and trade have always been popular.

80% of America isn't doing well, but it's time to celebrate the end of the (created) depression.

Not likely.