Home > Uncategorized > Help for small businesses ? Maybe not

Help for small businesses ? Maybe not

Another excellent piece in Slate which has resonance for those suggesting that direct government intervention is required to boost small businesses borrowing.

Here is the key quote..

But there is another reason the program faltered—and might never have been able to succeed in the first place. Small businesses need credit to grow, to acquire equipment and hire workers to make sure more and more customers come in. But if small businesses don’t really believe that those customers are going to come in, well, they tend not to want to take on any debt. At some point, the problem isn’t a lack of credit. It’s an economy-wide lack of demand.

http://www.slate.com/articles/business/small_business/2011/10/why_obama_s_30_billion_small_business_loan_program_has_flopped_.html

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