For the majority of small-business respondents in the 2009 Small Business Attitudes & Outlook Survey, the economic recovery is nigh. Seventy percent anticipate moderate to significant growth this year (only 1 percent think they will close their businesses), and 47 percent expect to hire additional employees.
The survey, conducted by online marketing firm Constant Contact, reveals two things, said CEO Gail Goodman: the optimism and perseverance of business owners, and their ability to adapt to even the toughest economic conditions.
Entrepreneur recently spoke with Goodman about the findings, and she noted the survey was a snapshot of what small-business owners are doing to grow their businesses and reach new customers on a budget. The results indicate that a mix of word-of-mouth referrals, email marketing and a good website is the way to go. "It's easy and affordable, and I think that's the highlight of this, that small businesses are finding ways to grow with very cost-effective tools and by staying in touch with current customers so that they refer new customers," she said.
She also pointed out that social media sites like Facebook, Twitter and LinkedIn are slowly gaining ground among entrepreneurs. "They're just starting to experiment with tomorrow's tools, but from a high level, are really focused on things that are delivering value today."
The Attitudes & Outlook survey was developed in conjunction with the American Chamber of Commerce Executives, SCORE and the Association of Small Business Development Centers.
Showing posts with label Jennifer Wang. Show all posts
Showing posts with label Jennifer Wang. Show all posts
Tuesday, July 7, 2009
Friday, June 19, 2009
Q&A: The New SBA Is Ready to Help
After years of budget cuts, the U.S. Small Business Administration is finally getting a $730 million boost from the American Recovery and Reinvestment Act of 2009. The stimulus bill money, coupled with an additional $15 billion from the Treasury Department to buy up SBA-backed loans, are for some, an indication that the agency will play a pivotal role in economic recovery. Although the SBA doesn't issue loans directly, it facilitates small business lending through banks and other financial institutions by mitigating associated risks. Alberto Alvarado is the district director of the SBA's Los Angeles office, which oversees the country's highest-volume SBA loan portfolio, valued at approximately $1.3 billion. We asked him to talk about the stimulus bill and the new programs the SBA would offer to provide access to credit, unfreeze the markets and re-inspire lending.
What is the SBA's role in the recovery?
At the end of the day, we are the messengers of hope. We have to go out there and encourage the businesses. Many, many are discouraged. Many, many have closed down. But we see the [bill] as a clear ray of hope, and certainly the best ray of hope we've had in a long time.
Are the programs going to have a visible impact?
We believe so. Starting this fiscal year [October 1, 2008], we've had a significant, significant decline in lending. In 2007, we did on average 120 approvals a week; last year, 70 a week. Last month we had about 20 a week. But once investors start to buy loans and the markets start to move, we expect the weekly number to pick up.
What's holding up the SBA loan markets?
One of the drivers in increasing loan volume has been the ability of a bank to sell a loan in a secondary market and obtain a significant premium. Then the bank could go out with increased liquidity and make more loans. Now, there are $3 billion in loans stuck in that secondary market. For about a year, banks haven't been selling, investors haven't been buying and premiums are low.
How long will the additional money be able to fund these new programs?
The funding will continue to the end of the calendar year and into next year, but that's about as much money as there is to run those programs. We think these are good programs and they will certainly jumpstart things. Whether they will be needed beyond that period is not clear at this point.
Are you expecting additional help from the federal government?
We're not looking necessarily for new programs or features because we think these are significant. Obviously there will be refinements as we go down, but nobody's thinking of these programs not netting the results [because] these measures dramatically increase the SBA's ability to help small business owners.
What's the SBA's outlook?
In concert with other things that are happening, we feel very positive about [the future]. We've seen excitement in the last few weeks, and we expect significant increase in volume and an increase in interest in our programs by the lenders and businesses.
What is the SBA's role in the recovery?
At the end of the day, we are the messengers of hope. We have to go out there and encourage the businesses. Many, many are discouraged. Many, many have closed down. But we see the [bill] as a clear ray of hope, and certainly the best ray of hope we've had in a long time.
Are the programs going to have a visible impact?
We believe so. Starting this fiscal year [October 1, 2008], we've had a significant, significant decline in lending. In 2007, we did on average 120 approvals a week; last year, 70 a week. Last month we had about 20 a week. But once investors start to buy loans and the markets start to move, we expect the weekly number to pick up.
What's holding up the SBA loan markets?
One of the drivers in increasing loan volume has been the ability of a bank to sell a loan in a secondary market and obtain a significant premium. Then the bank could go out with increased liquidity and make more loans. Now, there are $3 billion in loans stuck in that secondary market. For about a year, banks haven't been selling, investors haven't been buying and premiums are low.
How long will the additional money be able to fund these new programs?
The funding will continue to the end of the calendar year and into next year, but that's about as much money as there is to run those programs. We think these are good programs and they will certainly jumpstart things. Whether they will be needed beyond that period is not clear at this point.
Are you expecting additional help from the federal government?
We're not looking necessarily for new programs or features because we think these are significant. Obviously there will be refinements as we go down, but nobody's thinking of these programs not netting the results [because] these measures dramatically increase the SBA's ability to help small business owners.
What's the SBA's outlook?
In concert with other things that are happening, we feel very positive about [the future]. We've seen excitement in the last few weeks, and we expect significant increase in volume and an increase in interest in our programs by the lenders and businesses.
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