REPORT: SMALL BUSINESS CONSULTING ORANGE COUNTY CA – The small business is the backbone and cornerstone of the American economy, and in particular here in Orange County, CA. In fact, second only to our veterans and men & women in uniform, I consider the American entrepreneur and small business owners as our greatest heros. They create jobs for Americans, as well as inspire hope that one can lead their own destiny, a hope for financial independence.
Over two-hundred and thirty years later, we are an economic superpower that is still driven by entrepreneurs. Here are some interesting stats from the Small Business Administration (2012) of how small businesses shape and drive our economy:
- 99.7 percent of U.S. employer firms
- 64 percent of net new private-sector jobs
- 49.2 percent of private-sector employment
- 42.9 percent of private-sector payroll
- 46 percent of private-sector output
- 43 percent of high-tech employment
- 98 percent of firms exporting goods
- 33 percent of exporting value
Revive and assist the small business owner and you instigate an economic revival for the entire nation. Want to see the unemployment numbers drop? Help the small business owner. Want to see a growth in GDP? Help the small business owner. I believe that America is only one generation away from an economic renaissance if we were to greatly assist the small business owner.
Moreover, companies like Crown Funding Planning in Santa Ana, CA are providing needed mentorship, training programs and direction on how small businesses, startups and even non-profits can intelligently and correctly go about and succeed in generating needed investment monies. There is no doubt that this rapidly emerging industry that is becoming a massive resource for many small businesses and startups, and I see its future becoming even more popular and comprehensive.
The Current State of Small Businesses in America
How small businesses have been faring, abroad and here in Orange County, CA, since the economic recession of 2008 is a direct pulse of the American economy as a whole.
“Small businesses are core to America’s economic competitiveness. Not only do they employ half of the nation’s private sector workforce – about 120 million people – but since 1995 they have created approximately two‐thirds of the net new jobs in our country. Yet in recent years, small businesses have been slow to recover from a recession and credit crisis that hit them especially hard.
“Small businesses are critical to job creation in the U.S. economy. Small businesses create two out of every three net new jobs. Small firms employ half of the private sector workforce, and since 1995 small businesses have created about two out of every three net new jobs—65 percent of total net job creation.
“Small businesses were hit harder than larger businesses during the 2008 financial crisis, and have been slower to recover from a recession of unusual depth and duration. Small firms were hit harder than large firms during the crisis, with the smallest firms hit hardest. Between 2007 and 2012, the small business share of total net job losses was about 60 percent.” – Harvard Business School (July 22, 2014)
To add fuel to the fire, small business people are finding almost impossible to be able to qualify for loans as the majority of prospective borrowers suffer from credit problems induced during the recession. So economic growth that was supposedly going to be the result of massive stimulant packages gets killed by banks because their lending restrictions have become too restrictive to the average American who was to start a business.
Experts in Academia and in business agree that small businesses must be able to access capital and credit if they are to begin their journey to success. Unlike big corporations, small businesses do not have the same access to equity capital markets. Banks simply find it not profitable any longer to loan money to small businesses.
“Transaction costs to process a $100,000 loan are comparable to a $1 million loan, but with less profit. As a result, banks are less likely to engage in lending at the smallest dollar level. Some banks, particularly larger banks, have significantly reduced or eliminated loans below a certain threshold, typically $100,000 or $250,000, or simply will not lend to small businesses with revenue of less than $2 million, as a way to limit time‐consuming applications from small businesses. This is problematic as over half of small businesses surveyed are seeking loans of under $100,000, leaving a critical gap in the small business loan market.” – Harvard Business School (July 22, 2014)
The massive growth and popularity in crowdfunding has lead to the popularity of funding resources such as KickStarter and Indiegogo, have revived hope and access to capital for many small businesses and startups. But do not believe that this is the new “magic bullet” for anyone needing capital for a good idea.
Small Business Consulting Orange County CA
I offer small business consulting and have called Orange County, CA my home since I was eight years old. I grew up with small businesses my entire life. Let me help your small business grow its profits with my consulting services. Call me for a free 1-hour consultation.