More Doom and Gloom for Small Business?
July 21, 2010
I know that small business is the engine of growth. I also know that if I were working in a bank, I would not loan money to a small business. I wouldn’t loan money to a rich person wanting to buy an expensive toy. Heck, I wouldn’t loan money to my father, and he was an accountant. Note that, please.
While big businesses like the banks that got us into the economic tailspin that nearly plunked a whole economy into the abyss are set to report strong earnings this week, small business is suffering.
All this according to Philly.com. The write up “Tight $ Means Big Trouble for Small Businesses” says that:
some small business owners need to raid retirement finds just to stay afloat and use credit cards to keep their doors open.
The reason? Big banks aren’t trickling the money down to smaller concerns in the form of loans and that’s a big problem when you consider at least half of American workers are employed by these smaller places.
What does it all mean? Federal Reserve Chairman Ben Bernanke will step up pressure on big banks to lend money to smaller firms so they can hire the people who lent the big banks the money in the first place. All to get us out of the tailspin they created.
Small search and processing companies may want to put their heads in the proverbial sand. My thought is that the antics of those ever tricky bankers need to be scrutinized. I have plenty of time waiting in line to explain why someone wrote me a check made out to my Web site ArnoldIT.com. That’s a baffler, isn’t it?
Stephen E Arnold, July 21, 2010
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