Small business optimism remains at near-record lows. This lack of optimism has a negative effect on the way owners run their businesses and this has significant repercussions on the economy. If small-business owners felt as confident as they did in 2007 we would have around 2.5 million more people working today. Entrepreneurs, especially young ones, are also thinking twice about starting new businesses.
There are many misconceptions as to why small businesses that want to grow (not all do) aren't growing. Actions that address the real reasons for pessimism (and not the misconceptions) are sorely needed. Small-business owners need:
1. More mentoring from successful entrepreneurs that have accomplished what tomorrow's growth leaders are setting out to do.
2. More demand for their products and services as this is the driver of all growth and its challenging for small-business owners to find the right customers.
3. Better access to financing. Without access to growth capital its extremely difficult to achieve scalable growth.
Learn more at CFO.com.
Read more Finance Watch articles.
Photo credit: Shutterstock