Sunday, September 25, 2016
Small businesses surviving month to month
According to the JPMorgan Chase Institute, small businesses have been having unexpected shutdowns in recent months and says it can be catastrophic to their survival. The Bureau of Labor Statistics estimated small businesses with 50 employees or less held about 35 percent of the country's net jobs in 2015. This was important for jump starting the job growth after the great depression. About 1 in 4 businesses wouldn't be able keep their business going if the business went 13 days with out income. Diana Farrell states " it is well known that small businesses are a critical driver of economic growth, but the consistency of their growth is in question if they're living month to month," The median of american small businesses sees and average daily cash flow of 374$ with an inflow of 381$ there is only a 7$ difference on any given day of receiving and spending. Reporters say policy makers should be aware that new educational programs and diversified credit offerings can help small business owners with their knowledge and how to manage their liquidity.
LINK:
http://www.usnews.com/news/articles/2016-09-21/small-businesses-surviving-month-to-month-says-jpmorgan-chase-institute
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It is interesting to see that are unemployment rate is low, but a shutdown in small businesses hasn't seen that rate rise. The election has a big concern with this as both candidates are looking to increase help on small businesses, so that they can create more jobs.
ReplyDeleteIt's interesting to me that such a large number of small businesses are shutting down. In recent years, I've seen a lot of efforts to help the growth/expansion of small businesses and they seemed to be surviving fairly well. I wonder if there is a bigger underlying cause for these shutdowns.
ReplyDeleteIt is not surprising to see how the small businesses could not stay untouched from the effect of politics as no candidate has a majority of support and the fear of economic imbalance has taken over all the components of the economy.
ReplyDeleteIt is a shame to see such a large number of small businesses shutting down since in a lot of small local economies they are the backbone that keeps the town running. This upcoming election will hopefully be able to help these small businesses rise again and help lower the unemployment rate so our economy can flourish.
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