Feb 26, 2013 Sean Albert
Small businesses account for the majority of hiring and gross domestic product in the United States, illustrating the importance of the sector to overall economic health. As entrepreneurs often cite access to credit as the most important component of successful corporate operations and expansions, alternative financial services have been crucial in the economic recovery, as traditional avenues continue to tighten.
CNBC recently reported that the small business sector continues to have trouble rebounding from the harshest years of the recession, which stifled the overall economic situation, including job creation and productivity. The source cited studies that indicated small business owners have remained highly pessimistic, with expectations for 2013 firmly at the lowest levels in four decades.
Entrepreneurs often cite new legislation coming from Washington as troubling, as well as access to capital being too tight for comfort. According to the news provider, larger enterprises seem to be more optimistic this year, though this illustrates a large divide between small and big businesses, with the former believing it has been on the wrong side of new laws and regulations.
CNBC cited one economist who believed that smaller firms might actually be more pessimistic because of a relative lack of resources regarding analysis and research of new policies, which larger enterprises generally have plenty of. This could be putting entrepreneurs at greater risk of poor decision-making related to credit and other financial moves.
Small business owners should always research the alternative lending options available, as the sector has experienced massive growth following the economic crisis. Alternative financial services often come with several advantages for small businesses, especially when procured and used wisely. These benefits include quicker turn-around times during the application process, greater access to higher loan values and more.