As to the former, we’re finding that small companies are having a very difficult time gaining access to credit. Federal Reserve Chairman Ben Bernanke has been increasing his efforts at encouraging banks to lend to small businesses, pointing out that any unwillingness will cause whatever recovery that’s in motion to cease altogether. The significance of this cannot be overlooked; according to the Chairman, small businesses in America employ roughly half of all Americans, and account for about 60 percent of new job creation. Lending to small businesses has dropped steadily over the past few years, and that trend shows no signs of abating anytime soon.
There’s a “good news/bad news” feature to all of this. On the one hand, the economy, as a whole, may well languish in recessionary times for quite a while longer. However, for many who are unemployed, perhaps realizing that it is so much easier to begin a functional small business of one’s own might be the key to at least ending some of the more personal recessions that currently plague the American economic landscape.
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Bob Yetman, Editor-at-Large at Christian Money.com (www.christianmoney.com), is an author of a variety of materials on personal finance and investing, as well as on topics of fitness and self defense, to include the recently-released book Investor's Passport to Hedge Fund Profits (John Wiley & Sons, Inc; www.investorspassport.com) and the new unarmed combat training DVD Thunderstrikes - How to Develop One Shot, One Kill Striking Power (Paladin Press; www.mikereevesonline.com).