US small businesses are going through a tough time in accessing funds for their organization. This has paralyzed economic growth and has resulted in job decline. This laxity got revealed in an annual survey of the New York Stock Exchange. The NYSE result is the outcome of surveying 340 CEOs of companies located in 26 countries.
It has happened for the first time that Main Street business owners are included and used as samples. In the survey, 47 percent respondents said their capital needs are met marginally. Just 21 percent of respondents are found to have said that sufficient capital is available.
Small businesses are having a tough time in raising capital. It is this lack of access to capital that has posed biggest impact on job creation. Two-thirds of businesses surveyed do not expect to add jobs in 2013 and in-fact shall be cutting on jobs.
Banks are also not willing to bet on small businesses especially the new ones that are not having a sound credit history. Lending by banks has also dampened for enterprises doing business for 25 years or even less than that. This is alarming and has raised the concern for economic growth of US. The study also reveals that there is split recovery of the economy as large companies are growing and smaller ones are still struggling.
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