Economic condition for small businesses has remained challenging in 2009. The office of Advocacy report, however, shows signs of optimism for small businesses. Titled as “The 2010 Edition of the Small Business Economy: A Report to the President”, this report analyses overall economic environment for small businesses in the year 2009.
The report has highlighted the positive effects of federal government actions that affected small business economy. There are also signs of entrepreneurs looking forward to new opportunities. Winslow Sergeant, Chief Counsel for Advocacy, says, “In the beginning of 2009 many small businesses felt as if they were at the brink, not knowing how or if they would survive.”
Job losses of up-to 60 percent happened in case of small businesses in first three quarters of 2009. The first quarter saw the greatest losses as by the end of third quarter, net small business losses were one-third as compared to first quarter. American Recovery and Reinvestment Act (ARRA) went through a stimulus activity so as to help small firms grow in 2009.
Congressional budget office has found that policy actions have resulted in GDP rise from 1.5 percent to 3.5 percent in fourth quarter of 2009. Due to government stimulus, employment too has increased from 1.0 million to 2.1 million. American Express Open Small Business Monitor has found that there is optimism among 55 percent of entrepreneurs about their businesses future.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to