Small Business Confidence in The United States

February 9, 2016 by

54640451

2016 has not been kind to the stock market. The quarter of a percent increase to the interest rate last year scared many people, even though analysts predicted the change would not be felt too much.  Globally, the markets are not doing any better than the US market, and commerce has slow down across the country and industries.  But despite all these issues, and despite the fact the small business confidence it at its lowest since 2014, the small business community feel confident about the labor market in this country.

For more about this follow the links below.

US small business confidence at two-year low

U.S. small business confidence fell in January to its lowest level in nearly two years amid worries about the near-term outlook for business conditions and sales growth, consistent with a recent slowdown in economic growth.

The National Federation of Independent Business said on Tuesday its Small Business Optimism Index fell 1.3 points to 93.9 last month, the weakest reading since February 2014. Still, small businesses remained fairly upbeat about the labor market.

The NFIB said there was little sign that a stock market selloff and December’s interest rate hike by the Federal Reserve, the first in nearly a decade, had impacted confidence. Owners’ perceptions of business conditions in six months weakened sharply as did their views of expected sales.

Workers Are Ready To Quit; Small Business Pay Hikes Hit 8-Year High

Americans are ready to quit, while small firms are hiking pay rapidly despite weak sales and gloomy forecasts. Business continue to trim inventories too.

Job Openings Jump; More Workers Quit

Job openings rose to 5.61 million in December from 5.35 million in November, the Labor Department said in its JOLTS survey. The number of hires climbed to 5.36 million from November’s 5.26 million. That’s the highest since September 2004.

Total separations climbed to 5.1 million. Quits hit a 10-year high of 3.06 million, up sharply from November’s 2.86 million. That suggests workers are growing more confident about finding other, better employment.

Wholesale Destockpiling Continues

December wholesales inventories fell 0.3% vs. the 0.2% drop expected. November stockpiles were revised from -0.3% to -0.4%. Meanwhile, wholesale sales fell 0.3% after tumbling 1.3% in November. The data suggest inventories were a slightly larger drag on Q4 GDP than first thought. Q4 GDP growth was initially estimated at a 0.7% annual rate, with other data also signaling downward revisions.

Rural businesses are struggling to recruit young people

Poor public transport, sluggish broadband and a talent drain to big cities is making it hard for countryside enterprises to survive

​face a number of challenges with running my rural Indian cookery school in Somerset. So when I had a chance to question George Osborne at the recent Federation of Small Businesses policy conference in London, I asked: “What assistance will there be to attract skilled young people to settle and take jobs in rural areas?”

Osborne suggested broadband was the answer, much to our amusement. His response missed the point: we do need better broadband, poor internet speeds are an ongoing problem in rural areas, but it isn’t the solution to attracting young talent.

To recruit young people I’m competing with a talent drain into the cities. Many young people who grow up in rural Somerset leave for university in Bristol, Bath and Cardiff and never return. Poor public transport links and living costs put them off. The majority of new people moving to my village are retirees.

 

 

Filed Under: Ohio Business News Tagged With: , , , , , , , , , , , , , , , , , , , , ,

A Way to Limit Common Management Mistakes

December 14, 2015 by

64510516You’ve probably heard this saying, “Insanity is doing the same thing over and over again and expecting different results.”  It’s commonly attributed to Albert Einstein, but that’s a mistake – the exact origins of the quote are unknown. However, as mistakes go it’s a “no harm, no foul” one.

Like this one, some mistakes are little ones, and then there are those big enough to close businesses.  The ones big enough to close businesses usually are the result of the owner’s and manager’s repetitive, unproductive behaviors (i.e. insanity).  The kind of mistakes that they repeat over and over, regardless of facts which show the behavior isn’t working.

Maturation in humans and animals is the process of being able to learn from our mistakes, which results in positive behavior changes.  That’s what we call experience – I tried this, it didn’t work, I learned from it and will try something else that’s hopefully better (and repeat). 

There are several common management mistakes which most people make.  However, there’s a simple time tested way to avoid or minimize the damage from them.  A way which has evolved over centuries and has the power of experience behind it – ask for help. 

The majority of small businesses start because the owner knows something about the product or service.  He’s worked in a specific field for someone else and then gone out on his own.  He’s good at what he does and knows his product, but what he’s not good at is the “other stuff” (i.e.  marketing, accounting, legalities and regulations, human resources, taxes). 

Nor should he be.  While those areas are important in running a successful business, no one has the level of expertise or experience to understand them all.  He shouldn’t expect to be good at or knowledgeable about everything it takes to run a profitable company.

Yet, overwhelmingly small business owners expect just that of themselves.  They won’t ask for help, because they see it as a personal failing.  They believe they can and should figure it out for themselves.  However, they get sidetracked by trying to do the things they aren’t good at and lose focus on their strengths.

One of the best ways to limit mistakes in business (and life) is being willing to learn from others.  Learning from other’s mishaps saves us from having to go through the costs and hardships of making them ourselves.  There are more than enough chances in life to mess up, why not take the opportunity to let someone else do it for you when possible.

Filed Under: coaching Tagged With: , , , , , , , , , , , , , , , , , , , ,

Is SEO For The Small Business Owner?

October 29, 2015 by

Customer Relationship Management business chart on a digital tabFor some businesses SEO sometimes does not make sense.  It is no wonder then that many of the small businesses in the United States are not engage in trying or using SEO for their business. If you are a small business owner you may not have the budget or the incentive to undertake SEO as well. And although many businesses struggle to measure the ROI when hiring a company to do they search engine optimization, it is important to be aware of the benefits SEO brings to businesses when they do it well.

7 Credit Card Perks for Small Business Owners

You won’t get these sign-up bonuses and introductory APRs with consumer cards.

Owners of both new and established small businesses can benefit from a broad range of valuable perks offered with credit cards. Business credit cards not only provide a means for building and establishing business credit, but they can assist in record-keeping, preserving cash flow and separating business and personal finances. Much like consumer credit cards, the right business card can offer a plethora of rewards that you can redeem for flights, hotel stays and cash back on purchases.

Here are seven significant credit card perks for small business owners.

1. Valuable sign-up bonuses. Many credit cards offer a range of one-time promotions designed to attract new cardholders and business owners. These promotions might include sign-up bonuses allowing you to earn hundreds of dollars if you meet a specific spending requirement within a few months of opening the account. Sign-up bonuses may also award enough miles and points that you start out with free airline flights or hotel stays, simply for using your credit card.

Why Aren’t More Small Businesses Using SEO?

For more than a decade, thousands of businesses have enjoyed the benefits of high rankings in Google searches (and searches on competing engines) thanks to their SEO efforts. Larger corporations pour hundreds of thousands of dollars and allocate entire departments to gaining more online visibility, but even small- to mid-sized businesses can use a fraction of that budget to get more traffic and sales.

However, according to a recent survey by the Small Business Authority (SBA), less than 50 percent of small business owners in the United States think of inbound traffic from search engines as an “important” source of future business. Another 14 percent declared themselves unsure.

It’s also worth noting that only 17 percent of surveyed small business owners are actively investing in SEO. However, a startling 39 percent of business owners aren’t investing in any marketing strategies whatsoever, indicating that SEO alone may not be the problem.

How will the candidates help small business?

​All politicians express support for small business. These enterprises are the engines of our economy and represent the entrepreneurial grit that has made this country great. Unfortunately, these rhetorical commitments to Main Street have not always been accompanied by meaningful actions. As a result many small businesses are finding it difficult to launch or grow, while others are failing altogether.

Since the misdeeds that led to the financial crisis of 2008, the federal government has adopted a myriad of regulations and requirements designed to reduce risk-taking by Wall Street. The quest for safer banks and greater financial stability is a good thing. However, we must be careful of what we wish for. The most stable financial system is one with no lending at all and many small businesses today are struggling to find credit.

Filed Under: Ohio Business News Tagged With: , , , , , , , , , , , , , , , , , ,

Strategic Planning For Small Business Owners

October 7, 2015 by

54640451

Developing a business strategy is for many small business owners a fundamental step that they cannot afford to ignore.  Hiring a business consultant to brainstorm ideas and the steps to put this strategy in place is imperative for the success of the strategy.  Many small business owners ignore the importance of not only developing the strategy , but implementing it as well.  Consistent effort should give you the results that a good implemented strategy can bring to your business. For more about this and other news follow the links below.

STRATEGIC PLANNING: Planning for the future

When you bring up the term “strategic planning” to most company owners, you normally get some hesitant stares and mumbled words. Most owners think strategic planning is only for large companies and the time and resource commitment is too large for them to bear. If done properly, it does not have to be so at all. When most companies really think about how much time they think about and discuss all of the future needs of the business, it probably adds up to more time than an actual planning process would take.

Many companies think they have a strategic plan, but what they really have is a one-year operating plan or budget. A strategic plan looks at all phases of the business over a longer time horizon, normally five years or more. It helps companies set a long-term direction that drives short-term activities and behaviors, and helps allocate time and resources to future endeavors, challenges and opportunities that are out there. We all hear “be proactive, not reactive” all the time — a strategic planning process makes you do just that. You can plan for more than you think you can.

 

The 5 Steps of Strategic Planning for a Small Business

Strategic planning for small business is not a process that is completed overnight–or even within one week. According to the U.S. Small Business Administration (SBA), planning for growth should include a “high level review of the different elements of your business,” almost as if you were “describing” your company for the first time.  Take a close look at the marketplace, delineate the precise “needs you are trying to satisfy,” and describe to yourselves (to owners and top managers) exactly how your “products and/or services” are meeting the needs of your target “consumers, organizations and/or businesses.” Honestly evaluate your “competitive advantages,” and your “competitive weaknesses,” within your industry and locale. Then, take your time within each of the following business areas.:

Is budgetting drowning strategic planning in your organisation?

​“The budget is not just a collection of numbers, but an expression of our values and aspirations”…Jacob Lew

We can hardly see any organisation that does not have a well outlined budget in place. Organisations often rely on their budgets to guide them. It is not out of place to have a budget, but it is not enough to rely only on budget in driving the vision of the entire organisation.

Most organisations have missed it. How? They have allowed the budget to drive the organisation’s vision. Such organisations have worked day and night to develop a well outline budget but may not have realised the need to develop a strategic plan first. For the purpose of clarity, your organisation’s vision and the strategic plan are what drive your budget, and not vice versa.

Organisations that are reactive in their operations have low level of planning effectiveness. They allow the budget alone to drive the plan for the entire organisation. They also view planning as synonymous with financial objectives alone. Some other organisations are traditional in their planning effectiveness, and surprisingly are even better than the reactive organisations.

Filed Under: Ohio Business News Tagged With: , , , , , , , , , , , , , , , , , , , ,

Millennials And The Workforce

September 3, 2015 by

54642287

According to some reports, by the year 2025 Millenials will make up the majority of the workforce in the United States. This year alone Millenials comprise 36% of the workforce in this country and continue to grow for the foreseeable future. And although they are a passionate group of workers and can take less money if they are passionate about their positions, they are quick to move on if they are dissatisfied with their job or employer.

  To read more about this and other related topics, follow the links below.

Survey shows work ethic of new hires has deteriorated for small business owners

A survey released Tuesday by the Canadian Federation of Independent Business says about three-quarters of small business owners say the work ethic of new hires has deteriorated in recent years.

It also found that more than two-thirds of them say the quality of applicants has also declined.

“A lack of qualified applicants is the biggest issue for entrepreneurs and concerns about the quality and work ethic of new hires suggests a worrisome trend ahead for Canada’s workforce,” said the report.

 The CFIB said 65 per cent of entrepreneurs said  employees are the most important element to the success of their firm – more important than even their product or service.

 “Canada’s small businesses will be the first to tell you that their employees are their greatest strength,” said Dan Kelly, president of CFIB, in a statement. “But they are finding it increasingly difficult to find qualified applicants, especially workers prepared to consider entry-level jobs.”

Millennials will move, take less money for IT jobs

A new survey suggests millennials seeking IT jobs are willing to accept less money and relocate in exchange for positions they’re passionate about, but they also aren’t afraid to quickly move on if they are dissatisfied with current employers.

Millennials who want to work in IT say they would consider accepting less money and relocating if they find jobs they are passionate about, according to a new Progressive Insurance survey of 1,000 U.S. millennials interested in IT positions. The report, conducted by Wakefield Research, found that 30 percent of the millennial respondents are “very likely,” and 51 percent are “somewhat likely,” to accept smaller salaries in exchange for work they feel strongly about.

“It’s clear from the survey that millennials in IT are more interested in a job that allows them the flexibility to be creative and experimental rather than one that simply offers good compensation,” says Lynley Williams, recruiting director at Progressive Insurance.

Are Millennials Wreaking Havoc on Employers? Or Vice Versa?

Enter the Project Grow Challenge presented by Entrepreneur and Canon USA for a chance to win up to $25,000 in funding for your business. Deadline is Sept. 15 2015. Click here to enter.

“Help! The inmates are running the asylum!” may be the cry these days running through the heads of many business owners who have multi-generational employees.

This is to say that owners are struggling with the rapid rise of this younger segment of the workforce, and the way these employees refuse to behave the way their predecessors did — a scenario creating a wave of chaos in human resources departments. Let me explain further.

Much research has been done and many articles written on the millennials segment (young people born between 1982 and 2004, meaning employees aged 21 to 33) and their impact in the workforce. I personally never paid much attention to the issue until one of my clients experienced the impact of the millennials firsthand and passed on lessons he learned, which I’m passing on to you.

Filed Under: Ohio Business News Tagged With: , , , , , , , , , , , , , , ,

Goal-Setting is a Way to Success

February 9, 2015 by

64510516The way to achieve success is an age old mystery. Why do some people attain it and others don’t? Researchers, professors, psychologists and motivational speakers have spent lifetimes attempting to quantify and answer that question. They’ve discovered that, while there are many ways people can attain their dreams, goal-setting is still the gold standard. Here are 3 of the proven methods successful people use to achieve their goals.

Make a plan – A new study (soon to be published in “Behavioral Science and Policy”) has found that many people sabotage themselves at the very beginning of their quest for success. The more they want something the less likely they are to develop a plan and set goals to reach it. Its basic human behavior that most people think good intentions are enough and positive thinking will carry them through.

However, thinking isn’t action, doing is action – good intentions and positive thinking aren’t nearly enough. Overwhelmingly, empirical data and antidotal information shows that people with written plans are much more likely to complete their goals than those who don’t have a written plan.

Break it down – Break the components of the plan down into manageable pieces. A goal that’s not parsed into smaller, practical actions is too uncontrollable and complex. When people don’t have control they feel frustrated, confused, incompetent and inadequate to the task, which leads to abandonment of the objective.

For example, Joe set the goal of “Being a Better Manager”. It was a good goal, but impossible to achieve without being defined and broken down. What did it really mean? How was he to know when he reached it? What did he have to “do” to be successful? He worked with a coach to define, quantify and sort out the components into manageable daily tasks.

Build in consequences and rewards – After the plan is made and broken down into controllable tasks it’s important to benchmark them, and then attach rewards and consequences to each benchmark. If the mark is hit then the reward is given, if it isn’t hit the consequence is triggered. People are much more likely to meet their goals when this happens.

Involving others is intrinsic to this process. People are more successful in reaching their goals when others know about them. Joe and his coach created a system – when he reached a goal he took the afternoon off to golf and when he didn’t reach a goal he spent Saturday mornings cleaning up the break room. Both the carrot and the stick helped him stay on track.

Goal setting and monitoring can be rewarding and worthwhile. Other times it’s tedious and time consuming. That’s why successful people do it and unsuccessful people don’t. Successful people do the things that unsuccessful people aren’t willing to do.

Filed Under: coaching Tagged With: , , , , , , , , ,

Success Isn’t a Solo Act

December 17, 2014 by

 business (11)No matter how you feel about how he left, it’s good for Akron and Cleveland to have him back – he, of course, is LeBron.  And no matter how you feel about who’s the greatest basketball player of all time, there’s no denying he’s one of the elite.  It’s his emphasis on teamwork, among other things, that’ll get him into the Hall of Fame and maybe help him reach his vision of being the first billionaire athlete.

LeBron knows his goal of winning another championship will be achieved with teamwork, “I just bring the determination to win.  Me being an unselfish player, I think that can carry on to my teammates.  When you have one of the best players on the court being unselfish, I think that transfers to the other players.”

Great leaders understand their success is the result of other’s dedication, inventiveness and enthusiasm, as well as their own efforts.  But, in the United States we tend to downplay the concept of joint effort.  We put a lot of importance on the ideas of individualism and self-determination, concepts which have served us well.

However, these ideals can create problems when ineffective people become too enamored with their own achievements and take too much credit for their successes.  We all know people who were born on third base and go through life thinking they hit a triple (Barry Switzer).   Effective leaders know they deserve some of the praise, but definitely not all or even most of it.

They know their success comes from people showing up for work day after day and efficiently going about the business of doing business – even when their kids are sick or they had to get up early to shovel out the driveway.  A smart manager knows the employees should get credit for the company’s accomplishments; they’re the ones doing the work of making his vision a reality.

The true genius of effective leadership is to recognize implementing his vision isn’t just his responsibility.  He knows that achieving his goals rests on his ability to seek out and listen to ideas from everyone in the company, it’s a group effort.  A person’s success isn’t a solo act, except in the minds of narcissists.  It’s the result of good fortune, hard work, talent and a host of other people.

 

Filed Under: coaching Tagged With: , , , , , , , , , , ,

Should You Hire a Tax Professional?

November 7, 2014 by

business (4)For big corporations, having a team of lawyers, accountants, human resources and financial advisors is expected.  Small business owners and young entrepreneurs that have cash flow issues are tentative about having to part with more cash and hire an accountant or tax professional for their business. But, when it comes to dealing with the IRS, state and local authorities, having a tax professional can save you more than you will be spending by using his services. Fines and penalties for filing late, filing incorrectly, or not filing all the forms can add up and cost your business thousands of dollars in the long run. Tax laws change yearly, and deductions and tax breaks that your business may be entitled to can go unnoticed and unclaimed by your business.  Have an accountant or tax professional to help your business this year.  For more information about business taxes, follow the links below.

Ohio Small Businesses Misinformed About Tax Deduction

Republicans including Gov. John Kasich have promoted tax deduction as a way to help small businesses expand. Owners could take a 50 percent tax deduction on up to $250,000 of income for 2013.  But according to The Columbus Dispatch,  just 379,000 business filers took the tax deduction as of Oct. 19. That’s roughly half of the 717,000 filers the state’s Department of Taxation anticipated when the Republican-dominated Legislature passed the tax break in June 2013.

The newspaper reports that those business filers saved $287 million in income tax. That’s below the $533 million in projected savings. It appears however that it’s too early to say why the numbers didn’t match the expectation.

The average filer – those entities whose profit and income are one in the same – saved about $760. Most claimed the deduction on less than $40,000 worth of business income, providing average tax savings of less than $150. A fraction had incomes topping $180,000, with an average savings of nearly $6,000.

Tax deduction for Ohio small businesses not taken as frequently as state anticipated

COLUMBUS, Ohio –  A tax cut for small business-owners has not been claimed as frequently as expected.

Republicans including Gov. John Kasich (KAY’-sik) have promoted the tax deduction as a way to help small businesses expand. Owners could take a 50 percent tax deduction on up to $250,000 of income for 2013.

The Columbus Dispatch reports (http://bit.ly/12sKGkZ ) that just 379,000 business filers took the tax deduction as of Oct. 19. That’s roughly half of the 717,000 filers the state’s Department of Taxation anticipated when the Republican-dominated Legislature passed the tax break in June 2013.

The newspaper reports that those business filers saved $287 million in income tax. That’s below the $533 million in projected savings.

Ohio small businesses paid way more income taxes than they had to last year

Ohio small businesses paid hundreds of millions of dollars in income taxes they didn’t have to, according to a story in the Columbus Dispatch.

Last year, Ohio business owners could receive a 50 percent tax deduction on up to $250,000 of income.

About 379,000 tax filers took the credit out of the 717,000 filers the state’s tax department thought could do so.

Those businesses saved $287 million of the $533 million the state believed could be saved.

Northeast Ohio is key hub for nation’s manufacturing push

Northeast Ohio is leaving a mark on some national initiatives to advance manufacturing.

President Barack Obama last week announced plans to invest $100 million in an apprenticeship grant competition, $130 million in a competition that will help small manufacturers take on new technology, and more than $300 million in the advanced materials, advanced sensors and digital manufacturing technologies.

The University of Akron played a sizable role in identifying the priorities behind those announcements as part of the Advanced Manufacturing Partnership 2.0.

But that’s not the only connection Northeast Ohio has had to the national manufacturing conversation of late, as the CEO of Kent Displays Inc. — the company that makes the Boogie Board e-writer — recently completed an appointment as the co-chair of the subcommittee on innovation, research and development on the U.S. Department of Commerce’s Manufacturing Council.

Filed Under: Ohio Business News Tagged With: , , , , , , , , ,

Holiday Party = Strategic Opportunity

October 15, 2014 by

business (1)The company Christmas party has mostly been replaced by the company Holiday party.  Some companies are holding the Holiday party as early as the beginning of November.  Regardless of when it’s held it isn’t too early to start planning your strategy, because a company party is not a traditional party.  It’s a networking event, one you should take full advantage of.

According to various surveys managers say 15% – 25% of employees have limited their career growth because of inappropriate behavior at company functions.  An additional percentage may not have limited their growth, but they behaved poorly enough that their lack of judgment was noted and remembered.  Most people who’ve been to a company party have a cautionary tale about someone’s bad behavior and the posted pictures to prove it.

Be smart and make sure those stories and pictures aren’t about you.  Recognize and treat your company’s Holiday party as a strategic opportunity to advance your career.  Do your due diligence and develop a strategy to get positive recognition.  Here are a few tips to follow, which will help you.

Don’t drink – Remember, this is a work function you’re using to advance your career and you don’t drink on the job.

Don’t eat – It’s inventible, just when the CEO is free for you to make your move your breath smells like garlic, something is in your teeth and you’re unsuccessfully trying to juggle a used plate, soiled napkin and dirty utensils.

Don’t complain – A Holiday party is the time to be positive, appreciative and socially engaging.  People respond to genuine appreciation, not kissing up, of a job well done.  With the information you gathered use specific examples to highlight other’s and the company’s successes.

Don’t talk too much – You finally have a chance to meet the VP you’ve wanted to meet, don’t waste the opportunity by talking about your dog.  Plan on having a couple of things to say and ask, but let her do most of the talking.  People love to talk about themselves, learn to facilitate it.  Studies show that people who’re good listeners are perceived as knowledgeable and accomplished.

Social intelligence is vital for advancement in most workplaces.  Be smart and use the Holiday party as a networking opportunity to showcase your social skills.  Arrive on time, stay until the end and make the effort to speak to as many people as possible.  The adage – it’s not what you know, but who you know – is old, but still true.  Don’t ever doubt it, someone in the room is noticing.

Filed Under: coaching Tagged With: , , , , , , , , ,

Women In Business

August 28, 2014 by

business (10)There are more than 9 million companies that are owned by women.  They employee close to 8 million people, and together they accomplished sales close to 1.5 trillion dollars as of this year. With those statistics one wonders why it is still hard for a business woman to get a loan from a bank or get the same benefits than their male counterparts get. To read more about this topic and to read more about Ohio’s economy outlook, follow the links below.

Ranking state economies: See where Ohio falls

Ohio’s economy is something of a mixed bag, at least according to Business Insider, which has ranked all 50 states.

The Buckeye State ranks No. 25.

Here’s what Business Insider has to say about Ohio:

“Ohio has a disproportionate number of manufacturing and health services jobs. However, Ohio’s scores on our measures were very much a mixed bag:

On the bright side, Ohio’s unemployment rate dropped sharply over the past year, from 7.4% in June 2013 to 5.5% in June 2014.

The housing market in Ohio, on the other hand, is not recovering as quickly as it is in many other states. Ohio saw a small 0.1% drop in housing prices between Q1 2013 and Q2 2014.

Similarly, Ohio faces demographic challenges, with the working age population shrinking by a marginal 0.1% between 2012 and 2013, one of only 13 states to show a decline in this population.

Women small business owners struggle to get loans

NEW YORK (AP) — Women are a growing force in the business world, but if they own a company, they may still struggle to get a loan from a bank.

Carrie Charlick and Marcia Cubitt have $4 million in sales but have been rejected for $500,000 credit lines since 2012. Their 11-year-old company, Essential Body Wear, sells women’s underwear at parties at customers’ homes. That’s a problem for bankers, Charlick says. Because the Detroit-based business doesn’t have a traditional structure and sells directly to the public rather than retailers, banks keep saying no.

“We don’t have receivables and we don’t own a building,” she says. “We don’t have collateral.”

Male loan officers have also made inappropriate comments about the fact the company sells lingerie. Charlick is convinced that they have a problem with women-owned businesses.

Women owners have long been at a disadvantage getting loans. Some states required husbands or other male relatives to co-sign business loans until the practice was outlawed by the Women’s Business Ownership Act of 1988. But women’s business loan approval rates are between 15 percent and 20 percent below men’s, according to the online lending marketplace Biz2Credit.com.

Several factors contribute to the problem. Banks historically have been gun-shy about small businesses, and that caution increased due to stricter government regulations after the 2008 credit crisis. Often, women-owned businesses are young, making them look risky to lenders.

Greg Abbott celebrates growth in women-owned businesses in Texas, overlooks meaningful details

In an email blast, Greg Abbott’s campaign said Texas businesses owned by women flourished with Barack Obama in the White House.

Abbott, the attorney general and Republican gubernatorial nominee, wasn’t saluting the Democratic president. In the July 10, 2014, email message, Kim Snyder, Abbott’s deputy campaign manager, called Texas the “land of opportunity – especially for women.” Texas does better than other states, Snyder wrote, adding: “Let’s compare: the growth rate of women-owned businesses in Texas has nearly doubled that of the nation since President Obama has taken office.”

A reader, bringing the email to our attention, wondered about the described growth rates.

To our inquiry, Abbott spokesman Avdiel Huerta said by email Abbott’s near-doubling reference was based on reports by American Express OPEN, which American Express describes as the leading payment-card issuer for small U.S. businesses.

According to the 2013 State of Women-Owned Businesses report, Huerta said, there were 8,617,200 woman-owned U.S. firms, including 737,300 in Texas, in 2013. In 2007, AMEX said there were 7,793,139 woman-owned firms nationally and 610,007 in Texas, Huerta said.

Filed Under: Ohio Business News Tagged With: , , , , , , , , ,
« Previous Page
Next Page »