The Steep Climb to Economic Recovery

News on banks easing up on their standards for giving out loans to small business is definitely a good sign that we are on the way to recovering from financial slump. Moreover, the US Central Bank has also improved the terms on credit for small businesses. Even though it seems a good deal for those of us who want to take advantage of these latest financial offerings, it can also be noted that most entrepreneurs are still wary of asking loans and grants from banks. This can somehow be attributed to the fact that for the past four years, small businesses learned how to stand alone amidst the economic crisis.

It is a well-known fact that the economy is slowly recovering because of the perseverance of small businesses. Because of the lack of credit, small businesses had to look for other ways to sustain their business. And this served the SMB sector well because now that credit starts to ease up, most owners still use the same method they used when credit was tight.

Come to think of it, the largest generation of jobs during the economic meltdown came from the small business sector. When big companies laid off their employees, those same people went on to start their own business even though banks and investors tightened loans. With the ease of credit lending, there would be more chances for entrepreneurs to upgrade their products and services which would then generate more jobs. If this pattern continues, then the road to economic recovery would be smoother than we could imagine.

No comments: