The high levels of unemployment due to a faltering global economy is leading to massive job losses and record levels of unemployment. The percentage of unemployed workers stood at 5.7% in July of 2008 and as of July 2009 it has reached 10% according to figures released by the Bureau of Labor Statistics. Many people are facing trouble finding work and as a result, a large segment of those people are turning to other opportunities as a means to make ends meet. This has lead to a growth in the micro business sector that ranges from internet based enterprises to companies offering skilled services to their local communities.
The economic climate at the beginning of the millenium gave rise to many opportunities in the small business sector and at this time many of these business owners took out loans. In today’s riskier economic climate, cash flow is a concern for many entrepreneurs and as a result, the lending market is responding with alternatives to make the process of obtaining a small business loans faster and easier so that these business owners have access to more cash. For many start up businesses this has made a huge difference in their ability to deliver their product or service at levels that will ensure their profitability.
As consumers shift their spending habits to deal with the global recession, small business owners are having to adjust their strategies in an equally rapid manner in order to avoid losing out on profits. A large percentage of these operations are taking out a business cash advance when they need to make a rapid change in their business model or test out an alternative advertising method. According to these business owners, this small shift in liquid assets is making it easier for them to avoid missing out on opportunities that arise faster than traditional bank loans would allow them to engage.
Overall, economic experts predict a worsening economy with rising unemployment for a few more years while small companies move in to take over segments of the market that are not a focus of large corporations. This re-distribution of economic activity is seen as the key indicator that small businesses will lead the eventual economic recovery in the coming decade.