Economic Downturn Has Domino Effect on Small Business

The current economy in the United States is not due to merchants and small business but rather to large corporations and financial institutions that have mismanaged their assets. As a result, we have an economic downturn that has led to one of our highest unemployment rates and a major indicator of trouble in any economy.

While these unforeseen circumstances were arising, many small business owners held their ground and continued to purchase products and conduct their business in spite of lackluster sales. At the same time they were unable to increase any profit margins by raising prices. They were already selling goods at less than retail value. Shipments and deliveries have been sparse because what has cost the manufacturers in terms of fuel
has been passed onto the small business owner. In addition the media and newscasts have put the American public in a panic as far as spending and growth are concerned. With dire warnings on the economy, unemployment, housing foreclosures and the stock market the average consumer has succumbed to fear and has buttoned their wallet.

Most of these events could still be overcome by enterprising businesses however, more than anything else the decreased consumer spending has hurt their everyday base of operations. They are trapped in income constantly going out with only small amounts of revenue coming in the door. Commercial loans are very difficult if not impossible with excessive interest rates imposed even for those with good credit.

More meetings will now be held in Washington to focus on improving the unemployment rate. Business both large and small have to meet with the consensus that the small business owner must be able to compete in the marketplace. If not, all economic plans to improve the situation will fail. What can we do to help? First of all if you are a consumer, please research the available bargains and values that are offered by small business owners. If you are in need of a product or service, exercise due diligence and see what you can get for your dollar. Remember, the small businessman has had no bailout by the government and his livelihood is threatened every day. We have seen many small business owners close in 2009 with no life support being administered to what is the heartbeat of our economy. Don't let another business close without trying to make an effort to improve their sales. By doing so, you will be supporting our economy and the stream of income that keeps it moving.