November 10, 2011 Posted by: Liann Walborsky
Small businesses, often cited as the impetus for job creation and economic growth, appear to be demonstrating some glimmer of hope for the overall economy. Start-up activity has begun to pick up in such areas as amusement and recreation (restaurants, bars, travel-related businesses, etc.) — with increases in small business lending as well. PayNet, the premier provider of risk management tools and market insight to the commercial credit industry, estimates that 200,000 to 300,000 new companies are expected to be created in 2011-2012, meaning more jobs in the months to come.
Another key indicator, as reported by Intuit, shows that small business payrolls added 40,000 jobs in September, with 30,000 added in October.
2011 has also been a record year for SBA loans— with nearly 62,000 loans approved totaling $30.5 billion. This pace is expected to continue through 2012. And, if you’re wondering what types of businesses are most likely to be approved for an SBA loan, consider the list below of the top ten most favorable enterprises per the Small Business Administration (also considered to have the lowest rate of failure):
1. Veterinary Services2. Broilers and Other Meat Types3. Office of Dentists4. Offices of Optometrists5. Hotels and Motels6. Funeral Homes and Funeral Services7. Offices of Physical, Occupational and Speech Therapists8. Offices of Physicians9. Pharmacies and Drug Stores10. Offices of Lawyers
In terms of obstacles faced by small businesses — it’s not what you’d expect. According to the Small Business Outlook Survey conducted by the US Chamber of Commerce, 80% of respondents believe that the current regulatory environment is completely unreasonable, with 79% indicating that the US government should “get out of the way” of small businesses. In terms of the actual economy, its uncertainty is seen as one of the top three challenges facing small companies with 55% stating that this uncertainty is what stops them from hiring new employees.
Despite all of this, many Americans feel that starting their own business is a true passion and life goal — one that will drive them forward, despite the many economic challenges.
Are you a small business owner looking to finance your company? Tech CU offers a variety of different business banking services, as well as SBA and other commercial loans. Call us at 800.448.1467 or fill out our quick online form to start working with a Business Banking team member.
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