It’s obvious that small business owners are the heartbeat of the American economy. It takes lots of creativity and skills to keep a small business healthy and even grow in these tough economic times.
Economic conditions have an impact on all America businesses, though small businesses feel the effect of a change in economy faster than their large business counterparts.
Upswings in America economy typically provide a rush of expanded or even new business opportunities for small operations, whereas the reduction in the economic cycle may lead to severe and lasting impact. Now, let’s start by briefly discussing the impact of a strong economy on small businesses.
Strong Economy in U.S
Nearly all businesses enjoy greater prosperity in a strong Economy. Unemployment is slow, Disposable income is high, and consumer confidence prompts people to pump their money back into the economy by purchasing important and not so important goods and services. The impact of a good American economy to small businesses are in two-fold: as business increases, the need for a small business to keep pace with demand by hiring additional employees also increases, increasing retail space or adding new product lines.
While this may seem more like positivity, the downside is that if the economy becomes weak, many small businesses find themselves overextended, which can lead to a mass layoffs and business failures. Now, let’s highlight what happens during American slow economic period.
During an economic slowdown, small businesses face several challenges. Consumers start worrying about their job stability and, in turn, might start getting cautious with expenditures, which in turn results to decreased revenue for small business owners.
A slow profit stream can make it hard for them to repay creditors, which can proffer a negative effect on its long-term viability.
Businesses facing financial struggles are far less likely to qualify for loans useful for capital expenditures and operations, which will certainly limit growth opportunities. They are also forced to reduce the size of their workforce in this economic trauma. This leads to a limitation in their ability to serve customers and in turn contributing to the rate of unemployment, which furthers slows the economy.
Way out, please!
The way out is simply by going for the American made products. These products are simply of high quality because it is made by hard working men and woman that made America and its goods.
Those who dedicated their precious lives to help others and grow their community little by little to make a nation that brings pride and love to everything they do. Of course, they are small business owners. To help our home business experience that growth it deserves, we all need to support ourselves.
Furthermore, we have to keep an open mindset to our purchasing product and think of what our purchase will result into. This little decision change may go a long way into helping many small family, business as well as economy grow. To say it all, to drive American business, get bigger, cheaper and better products, we need to start buying things made in America. I mean American made products.