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The State Of The Small Biz Sector

We have seen projections for the small business economy for 2010, but how are businesses really faring on the ground? The numbers are coming in and they show the challenges that small business owners continue to face.

Scott Shane over at Small Business Trends has crunched some numbers here and he says things are pretty hard out there. According to figures by the National Bureau of Economic Research (NBER), the Great Recession is officially long over. It ended in June, 2009. That’s the good news. For small business owners, the reality of things is still difficult.

Shane has collated findings from a range of studies and reports. These are some of the highlights from his report:

  • Self-employment and new business creation are down
  • Fewer people are working at new and small businesses
  • Fewer owners are making capital investments, hiring, or increasing compensation
  • Fewer businesses are having their borrowing needs met, and trade credit is down
  • Venture capitalists are investing less money in fewer deals
  • Shane also provides access to his 26-page presentation the state of the small business sector. It’s interesting reading and shows that there’s a lot more that the government and banking sector have to do restore the confidence of the entrepreneurial sector.

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