This article discusses how small business owners have a hard time with financing for the obvious reasons of today's economy. Small business owners like any other businesses have to face the obstacle of having enough capital to grow the company. Banks have made it harder for small business owners to borrow because of the credit crisis and the recession. Small business owners are finding that not only is it harder to get credit but the credit rates they currently already possess are being raised at a insightful rate. Small business credit rates are being increased so that credit scores are plummeting. Which is causing it to become harder and harder for small businesses to make "ends meat" and conduct basic functions. Small business loans are becoming less available to those whom actually need the funds. Although the small business association loan program was booming in the 1990s, post Sept 11 caused small business owners to take the "brunt" of the risk. This is stretching the entrepreneurs' balance sheet to the max causing an overall domino effect.
Being that "Managing within the dynamic business environment, taking risks and making profits" small business owners are not making any profits because they aren't allowed to take any risks - because they don't have the capital nor the credit to do so. Being a small business owner, or to shorten it an entrepreneur means to take risk and make profit. Short, the reason why I chose this article was to show that entrepreneurs are being denied this opportunity without being given the capital they need to pursue such dreams.
This article discusses two main factors of being a small business owner: capital and credit. Without these two items it is virtually impossible to gain any leverage in a business. The small business owner has not means of "matching risk with profit" if capital and credit are not within the operational procedures. Revenue is not being made, loss occurs and the small business owner risks loosing their company and all the dreams that went along with it. The better solution would be for banks to open lines of credit to those small businesses that have set businesses proposals and those businesses that have shown growth. Any growth should do for lines of credit to become open and to allow for the economy to start flowing again. The only question is what small businesses get that leverage? The answer should be all of the small businesses that are in operation.
