Okay. So it took many months to destroy the economy and we expect it to be rebuilt overnight. Not going to happen folks. And according to a recent survey from CareerBuilder getting credit to grow your business is still one of the biggest issues.
Here’s what they found.
Thirty four percent of small businesses (organizations with 500 employees or less) do not think or are unsure if their companies will be able to access the credit needed in 2010. Also, 15 percent of small businesses said that an inability to access credit this year will prevent them from adding headcount. The survey was conducted between November 5 and November 23, 2009, among more than 1,450 small businesses.
As the economy faltered and credit was more difficult to obtain in 2009, small businesses faced tough challenges. Seventeen percent of small businesses reported they were unable to access the credit needed to support their businesses in 2009, while more than one-quarter (26 percent) of those companies who could not obtain credit were unable to add employees. On a positive note, of those companies who were able to access credit last year, 73 percent were able to hire new employees.
“While small businesses were hit hard during this recession, they will play a vital role as the economy bounces back,” said Brent Rasmussen, President of CareerBuilder North America. “After past recessions, small businesses re-energized the economy by driving innovation and putting people back to work. The majority of small businesses we talked to say they are confident they will not lose their businesses in 2010, and many are hopeful that they will be able to add staff to support their bottom lines and remain competitive.”
While small businesses are cautiously optimistic as they begin the new year, they are still preparing to face some hurdles. When asked what their organization’s top challenges would be for 2010, small businesses reported the following:
- Cost of health insurance — 42 percent
- Marketing expenses and building awareness — 26 percent
- Attracting and hiring top talent — 22 percent
- Government regulations — 21 percent
- Gaining access to credit — 11 percent
I’m not surprised at these results. Are you? Let’s talk about it