U.S has seen sharp decline in small business lending as the economy struggled to recover from recession. America cannot create jobs without a successful small businesses campaign and SMEs cannot hire until they get loans from banks.
Robert G. Wilmers, M&T Bank chairman and chief executive officer, while speaking at Buffalo Niagara Convention Center says he is troubled by the way things are today in the economy and banking industry. Creating jobs is the nation’s most pressing economic problem. Since the time of financial crisis the country has lost 7 million jobs and 25 million Americans are left unemployed, underemployed and marginally attached to the workforce. They are unable to find suitable, sustainable employment.
Small business has always been the catalyst for job creation in America. Wilmers has stated a ‘Massachusetts Institute of Technology’ study that has found 67 percent of new jobs to be created by companies having 20 or fewer employees between periods 1969 to 1976. In 2010, firms having fifty employees or fewer have accounted for just 3 percent of net job creation.
The small business engine has slowed down when it comes to the creative business of job creation. It has slowed down to the extent of completely ceasing job growth. This need to be checked and the declining job number trend should be reversed. According to Wilmers, this can be done if the banking industry restores public’s faith in bank and bankers. The financial crisis has previously made many to distrust banks.
Small business owners can find the capital they need to grow, build inventory and hire workers if banks and SBA come together to address the most pressing economic challenge of job creation.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org