Small Business Drives The Economy

This video clip from the summer of 2009 highlighted the role of small businesses in driving economic recovery.  All the principles outlined in this appearance are applicable to the economic situation today.  The economy is not recovering quickly.  This is driven by little job creation in the small business sector.  The issue still is confidence and liquidity.  The financial crisis was caused by the burst of the housing bubble.  Home loans and lines of credit were the primary sources of liquidity for small businesses.  This crash removed an important source of capital and therefore job creation.  There has been no replacement either by the private sector or public sector for this source of cash.  Net, housing needs to recover for small businesses to have access to this source of liquidity again and start to create jobs.

— Steve Odland

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