April 19, 2013 Leave a comment
We recently blogged about how spring is bringing small business expansion due to signs of economic recovery, but in the past two weeks, new reports from business and economic analysts have revealed that many small businesses are still hesitant to take steps towards a long term sustainable plan. Some reports say the hesitance from small business owners actually plays a role in slowing the economy’s recovery, because small businesses are so vital to economic growth. Add this into the news cycle from late 2012 and early 2013 (the Fiscal Cliff and concerns about sequestration budget cuts) it’s understandable that many small business owners view putting time and money into long-term goals as a gamble. Below are some articles on the subject that outline some improvements worth considering if you’re thinking of taking the next step in growing your business. Do you have a story about how taking a chance helped your business? Tweet it to @IPNTeam.
Is Small Business Ready For The Recovery?
Forbes: article by Frank Sorrentino, contributor
The constant barrage of grim headlines continue to remind us of the past, dissuading small businesses to position themselves for long-term success. We need to look beyond the sensationalism and ask ourselves, “What does today’s economic environment actually look like.”…The good news is, the fundamentals are pointing to a recovery. However, if we continue to follow the popular perception, the result will be inaction and immobilization. Rather than focusing on the here and now – the positive changes and economic trends emerging – small business owners are still operating in a wait and see mode, rather than preparing their business to be on track for the recovery.
Number of the Week: Small Business Causing Spring Swoon?
The Wall Street Journal: article by Phil Izzo
Even now that things have improved, small businesses remain cautious. J.P. Morgan Chase Chief Executive James Dimon noted on Friday that their balance sheets have improved and that they are well-positioned for growth. But “small businesses remain cautious about the recovery and fiscal uncertainty, and are not investing their capital,” he said in the bank’s earnings release…That hesitancy has translated into more muted hiring. Since the economy started adding jobs again in early 2010, large private-sector firms have boosted their payrolls by nearly 8%, according to ADP. Businesses with fewer than 50 workers, meanwhile, have only increased employment by 4.7%.