Small Business Borrowing Woes Hurt Jobs, Says NYSE CEO
When one thinks about small businesses in America, the New York Stock Exchange (NYSE) is generally the first thing to pop into one’s mind. Indeed, the NYSE is often associated with the largest companies on the planet but today is a different story as they just released the results of their annual survey on the economy, business, and job creation. The survey was composed of a plethora of different areas including 340 CEOs from large companies listed on NYSE, and 285 U.S. small business owners.
As NYSE CEO Duncan Niederauer highlights, this was the first time in the survey's almost decade long history that Main Street business owners were included, and 47 percent of them said their capital needs were being met marginally or not at all. Just 21 percent said they have sufficient capital. Niederauer was vocal about this latest release and the inclusion of the small businesses because of his side project the Jumpstart Our Business Startups Act, or JOBS Act, also aimed at helping small businesses.
More highlights from the survey:
- Two-thirds of the small businesses do not expect add jobs in 2013, or will be cutting jobs
- Banks are less willing to bet on small businesses than in the past, especially on newer ones that have not yet built a strong credit history
- Small businesses less than 10 years old have had almost twice as much difficulty in accessing capital as companies that have been in business for over 25 years
- The story was slightly better for large global companies
- 43 percent of CEOs saying their need for capital is fully met, while 20 percent said they do not have enough
- 69 percent of the CEOs of public companies saying conditions were fair, 20 percent saying conditions are poor, and 11 percent saying they are good
- Just under half of the small-business owners saw U.S. economic conditions as fair, 39 percent saw them as poor, and 12 percent said they were good
Click on the link below to see the rest of the highlights.
Source - Reuters