Throughout the month of July, countless reports have been released from various government agencies, advocacy groups and more regarding the state of the small business sector. While there are some inconsistencies, especially regarding national small business loan disbursement volumes, many have cited similar problems that entrepreneurs face.
These issues include a job skills gap and, of course, limited access to adequate funds to either start, expand or revitalize a company. Finding ways to overcome these problems will be imperative to boosting the overall economy, as small businesses account for more than 99 percent of all employer firms in the United States, according to Small Business Administration data.
Open positions abound, unemployment remains high
The Huffington Post recently reported that there has been a clear gap between business hiring needs and what is available in the employee market. According to the source, the Wall Street Journal and Vistage International revealed the results of a joint survey that found one-third of all small businesses had job openings in July.
The U.S. Department of Labor data shows that since February 2011, there has been a monthly average of 3 million job openings at businesses in the nation, the Huffington Post added. When compared to the unemployment rate, which has gradually dropped from 9.1 percent in July of 2011 to 8.2 percent this month, there is a sign that something must be done to narrow the skills gap.
The news provider purports that businesses need to take a lead on training their employees by creating initiatives to cultivate talent among prospective, new and long-term workers.
If you want to begin offering training programs to entering and existing staff members, but need to find the financing to do so, consider using a service like BoeFly. This firm has thousands of participating lenders, and with just one loan application, you will be matched with the financier best suited to your specific business needs.
The question of funding accessibility
Reports regarding small business lending volumes in July have been highly contradictory, as some firms have reported improvements while others revealed either stagnant or decreased output of business loans. As funding is the most important aspect at the startup and expansion levels of businesses, consistent improvements in lending are imperative.
Luckily, many groups are working to improve small business accessibility to funds, such as the SBA and local financial institutions. Many companies have had issues finding funds to refinance debt – an often pivotal function of operations – which has led the SBA to extend its temporary 504 refinancing loan program through the end of September.
Further, the SBA has been increasing product availability to financial institutions with the hope of encouraging higher disbursement volumes across the nation.
As businesses begin to realize the issues holding them back from successful operations and advocacy groups supply more guidance and financial support, the sector will start to see more significant improvements.