Wednesday, December 23, 2009

Lending to small businesses

The December 12th issue of The Economist includes an article "Small business, big problem" regarding the continuing difficulties small businesses have in obtaining financing. A few pithy bits:

"America's large firms get 30% of their financing from the banks; its smaller enterprises rely on them for 90% of their financing needs."

"Small businesses account for the majority of private-sector employment in America and Europe."

"Firms with fewer than 500 workers accounted for 64% of the net new jobs created in America between 1993 and the third quarter of 2008."

The article in particular proposes that governments "offer relief on payroll taxes for firms that are vibrant enough to make new hires."

Is anybody in government listening?

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