This document discusses small businesses in the United States and their relationship with financial institutions. It outlines the major challenges small businesses face, including access to capital, regulations, marketing costs, and competition. It analyzes key stakeholders that impact small businesses like government agencies, business owners from various demographics, banks, and credit unions. The document provides statistics on small business trends and recommends opportunities for credit unions to better support small businesses.
3-I stands for Involve, Identify, Improve. This document tries to explain how enterprises can manage issues and risk associated to IT services and solutions to help improving enterprise business value.
Nick krest - best strategies for business successNickkrest
The shorter term enables greater accuracy in completing the action steps to achieve the key initiatives, Wilson explains. The company’s co-principal Julie Stoney recommends the plan focus on only three to five key initiatives, as each initiative will require several steps. Among the steps for “growing the business,” for instance, may be acquiring a complementary business, developing new product lines and franchising.
Impact enterprises in India : Challenges and Best PracticesManju Menon
This is report of a recent study conducted by me as a part of IDEX Global Fellowship and Accelerator Programme. The study focusses on challenges faced by Impact enterprises in India and some best practices to over come them. Nine impact enterprises and 4 Impact investor and incubators were interviewed for this study.
3-I stands for Involve, Identify, Improve. This document tries to explain how enterprises can manage issues and risk associated to IT services and solutions to help improving enterprise business value.
Nick krest - best strategies for business successNickkrest
The shorter term enables greater accuracy in completing the action steps to achieve the key initiatives, Wilson explains. The company’s co-principal Julie Stoney recommends the plan focus on only three to five key initiatives, as each initiative will require several steps. Among the steps for “growing the business,” for instance, may be acquiring a complementary business, developing new product lines and franchising.
Impact enterprises in India : Challenges and Best PracticesManju Menon
This is report of a recent study conducted by me as a part of IDEX Global Fellowship and Accelerator Programme. The study focusses on challenges faced by Impact enterprises in India and some best practices to over come them. Nine impact enterprises and 4 Impact investor and incubators were interviewed for this study.
Aftermarket audit to Gain Competitive leadership Browne & Mohan
Industry experts opine that OEM’s and their dealers may be losing $9-15 Billion unqualified sales annually to competitors. Return after repair is a grouse which happens with the iconic brands at dealer level and OEM’s do not have complete visibility. OEM’s and dealers can bill billions of dollars more only if they knew how to constantly manage revenue leakages and manage cost of operations. In this paper, Browne & Mohan management consultants share aftermarket audit framework that can be used to assess current costs of service and operations and identify areas of improvement.
Companies of all sizes (SMB to large ones) are finding the current economic environment challenging. Business growth is slow or almost stagnated, new customer gains are far and few, customer spend has become very unpredictable and hence managing capacities is posing a big challenges. Browne & Mohan consultants based on their experience of guiding companies have compiled strategies that can be adopted to successfully maneuver the low tides. We suggest product or service offering changes, organizational changes, employee engagement changes, partner and ecosystem changes, sales and marketing structure changes that are appropriate to most companies.
Insights Success is the Best Business Magazine in the world for enterprises, being a platform it focuses distinctively on emerging as well as leading fastest growing companies, their confrontational style of doing business and way of delivering effective and collaborative solutions to strengthen market share. Here, we talks about leader’s viewpoints & ideas, latest products/services, etc. Insights Success magazine reaches out to all the ‘C’ Level professional, VPs, Consultants, VCs, Managers, and HRs of various industries
Manufacturing is a major contributor to GDP and employment provider in many countries. Both large and MSME are facing effects of global downturn which has made survival a test for many. With customer gains becoming far and few many companies worried about growth and profitability. Browne & Mohan consultants in this paper present the approach manufacturing companies should use to turn around profitability and survival.
360 Degree Marketing: How to benefit from online and offline marketing commun...Browne & Mohan
With advent of online and mobile platforms, marketing managers now have both offline and online marketing assets to increase their brand reach and customer engagement. However, many companies do not plan and execute a marketing strategy that meshes assets available on different media. Moreover, companies do not use an extensive embellished strategy to keep in continuous touch with customers. In this white paper, Browne & Mohan consultants show how to integrate offline and online marketing assets systematically and build a strong extensive content strategy to develop from low cost low information intensive assets to costly high information intensive assets.
Building an outcome driven high ownership companyBrowne & Mohan
What does it take a build company where every employee owns the quality of their outcomes and productivity , every act is purpose driven. What elements of a workplace make an employee to willingly own and contribute more to her job?. In this paper Browne & Mohan consultants presents the mechanisms that can be used to build an high ownership and outcome driven company
Trading companies add value by bringing suppliers and buyers together. To build a successful and growing trading company, there is much to be learnt by bench marking with successful ones, and working on some drivers that will enable the company to unleash growth. This paper discusses some of the drivers for improvement.
Addressing some of the early questions that entrepreneurs must ask themselves before beginning on their journey:
* What are your goals for your enterprise? (Business, nonprofit, social enterprise)
* Will your business be focussed on profit? Social benefit? Will it be a consulting practice? A service company? A product company?
* What are the different requirements and resources necessary for your selected enterprise model?
* What type of financing should you target: equity, debt, grant funding or a combination of all three?
This is the lecture that establishes the framework for the rest of the course and gets entrepreneurs on their way!
Part of the CIBC Presents Entrepreneurship 101 lecture series: http://www.marsdd.com/ent101
Superseva: Building a successful service businessBrowne & Mohan
Superseva is an enterprise services company offering concierge, Rewards & recognition, employee engagement services to corporates. It also offers personalised services to employees of client organizations. This case presents the evolution of the company under the dynamic leadership of its CEO, Ms Kumud Sharma.
Thanks to all my readers. It gives boost when I get calls from my readers and am always happy to revert back to my followers and readers. I am sorry if I am unable to reply to all the e-mails due to my busy schedule.
Contact me for any type of assignments help(nominal charges).
Thanks and Regards,
Er. Bhavi Bhatia
e-mail: bhavi.bhatia.411@gmail.com
Phone: +91-9779703714, +91-9814614666
The Future Of SME Finance: Trends To WatchM1xchange
The future of SME finance is a crucial topic that businesses need to be aware of. Small and medium-sized enterprises play a vital role in economic growth and job creation, and without access to finance, their growth potential can be limited. In this blog post, we will delve into the latest trends in SME finance and provide valuable insights on how businesses can take advantage of them.
Aftermarket audit to Gain Competitive leadership Browne & Mohan
Industry experts opine that OEM’s and their dealers may be losing $9-15 Billion unqualified sales annually to competitors. Return after repair is a grouse which happens with the iconic brands at dealer level and OEM’s do not have complete visibility. OEM’s and dealers can bill billions of dollars more only if they knew how to constantly manage revenue leakages and manage cost of operations. In this paper, Browne & Mohan management consultants share aftermarket audit framework that can be used to assess current costs of service and operations and identify areas of improvement.
Companies of all sizes (SMB to large ones) are finding the current economic environment challenging. Business growth is slow or almost stagnated, new customer gains are far and few, customer spend has become very unpredictable and hence managing capacities is posing a big challenges. Browne & Mohan consultants based on their experience of guiding companies have compiled strategies that can be adopted to successfully maneuver the low tides. We suggest product or service offering changes, organizational changes, employee engagement changes, partner and ecosystem changes, sales and marketing structure changes that are appropriate to most companies.
Insights Success is the Best Business Magazine in the world for enterprises, being a platform it focuses distinctively on emerging as well as leading fastest growing companies, their confrontational style of doing business and way of delivering effective and collaborative solutions to strengthen market share. Here, we talks about leader’s viewpoints & ideas, latest products/services, etc. Insights Success magazine reaches out to all the ‘C’ Level professional, VPs, Consultants, VCs, Managers, and HRs of various industries
Manufacturing is a major contributor to GDP and employment provider in many countries. Both large and MSME are facing effects of global downturn which has made survival a test for many. With customer gains becoming far and few many companies worried about growth and profitability. Browne & Mohan consultants in this paper present the approach manufacturing companies should use to turn around profitability and survival.
360 Degree Marketing: How to benefit from online and offline marketing commun...Browne & Mohan
With advent of online and mobile platforms, marketing managers now have both offline and online marketing assets to increase their brand reach and customer engagement. However, many companies do not plan and execute a marketing strategy that meshes assets available on different media. Moreover, companies do not use an extensive embellished strategy to keep in continuous touch with customers. In this white paper, Browne & Mohan consultants show how to integrate offline and online marketing assets systematically and build a strong extensive content strategy to develop from low cost low information intensive assets to costly high information intensive assets.
Building an outcome driven high ownership companyBrowne & Mohan
What does it take a build company where every employee owns the quality of their outcomes and productivity , every act is purpose driven. What elements of a workplace make an employee to willingly own and contribute more to her job?. In this paper Browne & Mohan consultants presents the mechanisms that can be used to build an high ownership and outcome driven company
Trading companies add value by bringing suppliers and buyers together. To build a successful and growing trading company, there is much to be learnt by bench marking with successful ones, and working on some drivers that will enable the company to unleash growth. This paper discusses some of the drivers for improvement.
Addressing some of the early questions that entrepreneurs must ask themselves before beginning on their journey:
* What are your goals for your enterprise? (Business, nonprofit, social enterprise)
* Will your business be focussed on profit? Social benefit? Will it be a consulting practice? A service company? A product company?
* What are the different requirements and resources necessary for your selected enterprise model?
* What type of financing should you target: equity, debt, grant funding or a combination of all three?
This is the lecture that establishes the framework for the rest of the course and gets entrepreneurs on their way!
Part of the CIBC Presents Entrepreneurship 101 lecture series: http://www.marsdd.com/ent101
Superseva: Building a successful service businessBrowne & Mohan
Superseva is an enterprise services company offering concierge, Rewards & recognition, employee engagement services to corporates. It also offers personalised services to employees of client organizations. This case presents the evolution of the company under the dynamic leadership of its CEO, Ms Kumud Sharma.
Thanks to all my readers. It gives boost when I get calls from my readers and am always happy to revert back to my followers and readers. I am sorry if I am unable to reply to all the e-mails due to my busy schedule.
Contact me for any type of assignments help(nominal charges).
Thanks and Regards,
Er. Bhavi Bhatia
e-mail: bhavi.bhatia.411@gmail.com
Phone: +91-9779703714, +91-9814614666
The Future Of SME Finance: Trends To WatchM1xchange
The future of SME finance is a crucial topic that businesses need to be aware of. Small and medium-sized enterprises play a vital role in economic growth and job creation, and without access to finance, their growth potential can be limited. In this blog post, we will delve into the latest trends in SME finance and provide valuable insights on how businesses can take advantage of them.
Survey: A Portrait of How U.S. Small Businesses Get Started Intuit Inc.
At Intuit, our mission is to enable more small business to succeed. That’s why we decided to look more closely at the root causes of low survival rates among small businesses. We conducted a nation-wide survey that provides a snapshot of how small businesses get started, and some of the common risks that pop up in the early years.
The Importance of SME Finance and How It Boosts Business GrowthM1xchange
In the ever-evolving world of business, access to adequate financial resources is vital for SMEs (small and medium-sized enterprises) to thrive and expand. SMEs play a crucial role in the economy, driving innovation, generating employment, and contributing to overall economic growth. However, without sufficient funding, these businesses can struggle to reach their full potential. This article delves into the significance of SME finance and how it acts as a catalyst for business growth.
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
Did you know that 45,000 businesses in the United States fail each month? And that 44 percent of small businesses used credit cards as a source of financing in 2008, compared to 16 percent in 1993, according to the Small Business Administration? Learn how to take a proactive approach to managing your debt and creating cash flow with out borrowing money. Join the National Restaurant Association, Nation's Restaurant News and SettleSource, Inc. for this free one-hour event. Learn more at http://bit.ly/dqfzkI .
Unlocking the Power of Factoring Finance and Invoice Discounting for SMEs: A ...M1xchange
Small and medium-sized enterprises (SMEs) play a vital role in driving economic growth, innovation, and job creation. However, one of the biggest challenges that SMEs face is securing the financing they need to support their growth and operations. Traditional lending options can be difficult to secure, and SMEs may not have the collateral or credit history required to qualify. This is where factoring finance, invoice discounting, and bill discounting come in as alternative financing options that can provide working capital for SMEs without the need for collateral or a long credit history. In this blog post, we will explore these financing options and how they can benefit SMEs.
Seminar Presentation at Institute of Management and Information Technology (IMIT), Cuttack, Odisha, India.
Topic- Cloud Computing with Detailed Discussion on some of the key Amazon AWS components
Business- conflict between organizational units due to communication gap and lack of understanding. This creates confusion trust issue, increases cost and delay in bringing product to market.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
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Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
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Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
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Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
1. Small Business
Research
1 0 / 1 6 / 2 0 1 2
Sundeep Mohanty
This document is to capture small business behaviors,
concerns, issues, impact on USA economy and what
opportunities these small businesses bring for financial
institutes.
2. Page 1 of 16
Table of Contents
Introduction ..................................................................................................................................................2
Major Challenges for Small Business ............................................................................................................3
i. Access to Capital ...............................................................................................................................3
ii. Dealing with regulation.....................................................................................................................3
iii. Affording Marketing..........................................................................................................................3
iv. Transitioning from self-funded to funded ........................................................................................3
v. Finding and retaining right resources...............................................................................................3
vi. Finding ways to grow ........................................................................................................................3
vii. Getting paid in time and getting fair price....................................................................................4
viii. Money Management ....................................................................................................................4
ix. Economic uncertainty and weak sales..............................................................................................4
x. Bargaining power and competing against big national and multinationals firms............................4
xi. Need of one stop operational need fulfillment ................................................................................4
xii. Business sustainability plan ..........................................................................................................4
Stakeholder Analysis.....................................................................................................................................5
A. Government and Small Business Administration (SBA)....................................................................5
SBA Loan Categories .............................................................................................................................6
B. Small Businesses Owners..................................................................................................................6
a. Women Owners ............................................................................................................................6
b. African American Owners .............................................................................................................6
c. Minority Owners...........................................................................................................................7
d. Veteran Owners............................................................................................................................9
C. Banks...............................................................................................................................................10
D. Credit Unions ..................................................................................................................................12
E. Angel investors and other financial institutes ................................................................................13
Other Facts:.................................................................................................................................................13
References ..................................................................................................................................................15
3. Page 2 of 16
Small Businesses and Credit Unions
Introduction:
There are 28 million small businesses in USA and in an average contribute 30% economic activities per
state. Out of 28 million small businesses 70% of small businesses owned and operated by single person
and at the same time small business employ 57% of USA private workforce which is almost 77 million of
USA workforce and it contributes to 44% of USA payroll.
The small businesses which are in the coastline states like, California, Texas, Florida, Virginia, New York
creates more cash flow and generates more job opportunities then small businesses in other states
whereas Northwestern states like Montana and Wyoming relay more heavily on small businesses.
But for the small businesses the biggest challenge is getting financed, getting help in financial issues,
consultation how to grow their business, and challenge of competing in crowded marked alongside big
USA businesses and global competitors. Banks and other big financial institutions don’t want to extend
their supportive hands to because of their relationship with big corporates and credit unions still finding
it are difficult to understand and trust these small businesses. It means till now in most cases small
businesses are doing their business alone with little or low support from banks and other financial
institute.
Government lately understood the importance of small businesses and trying to help small businesses
through “Small Business Administration” (SBA) program. But this Government initiative is not enough to
support and fulfill all the need of the small businesses and help them sustain and grow. Still there are
4. Page 3 of 16
big gaps between small businesses and financial industries that create opportunities for the credit
unions to come closer to small businesses and making them loyal to them.
Major Challenges for Small Business:
i. Access to Capital:
One of the biggest challenges for small business is getting access to fund/capital. Small
businesses often find it difficult to build trust with financing institutions. 49% small business
funded by credit cards and ends up paying high interest rate. As they lag in getting long term
financing and liquidity it reduced their ability to plan for improvement and growth.
ii. Dealing with regulation:
Dealing with regulation is also one of the major challenges for the small businesses. Most of
the time small businesses where not aware of what are the benefits available to them,
whom to approach for financing, understanding different state and federal law in
conducting business. One of the key reasons for small businesses to spend less time in
understanding the regulation might be working under limited budget and lack of resources
to consult.
iii. Affording Marketing:
Most of the small businesses lag in effective marketing. Most of the small businesses works
in tight budget don’t have enough budget for marketing spending, small businesses most of
the time works with other big businesses and find it is difficult to create their own brans
value. Most of the time small businesses go unnoticed and this is one of the main reasons
for small businesses to expand their business and create trust in market.
iv. Transitioning from self-funded to funded:
As most of time small business start their business using their credit card or other personal
source of funding, going forward they find it very challenging to move from self-funding
using credit card or other personal funding source to work on getting short term and long
term financing.
v. Finding and retaining right resources:
Finding and retaining right resources is a big challenge for small businesses. In an average
small businesses pay less in salary and lacks in providing attractive benefits compares to
multinational organizations. According to study, 61% small businesses considers it is very
challenging and difficult in getting right resources, it makes the business owner very limited
and overall lack of right recourses impacts businesses ability to grow.
vi. Finding ways to grow:
Because of their limited financial and human resources, Small businesses spend less in
research and new development activities. Small businesses lag in market analysis and as
most of the small businesses works for other big businesses, they devote themselves is
meeting the demand of other businesses with whom the small business does business and
lags in improvement and grow.
5. Page 4 of 16
vii. Getting paid in time and getting fair price:
As most of time small businesses works in conjunction with bigger businesses and mostly
depends on one or two vendors and partners, they always stay on receiving end. Small
businesses easy agrees to big business, most of the time it becomes challenging for small
businesses to get paid in time and getting fair price of their products and solutions.
viii. Money Management:
As most of the time small businesses are owner dependent and need owners involvement
or owners decision in operating business, most of the time the business operation keeps the
business owner busy and involved. Giving priority to business, the small business owner
spend less time to utilize the money in better way and hence it limited the small businesses
to grow their business and to utilize money to work for them.
ix. Economic uncertainty and weak sales:
This is one of the other key reasons which hurt small businesses the most. With uncertainty
in market and with low demand, small businesses come under high pressure to provide
more service and solutions in reduced price. With cost remains the same, profit margin
reduces and without changing the business model and bringing innovative approach in
selling products and solutions, it is very difficult for small businesses to stay longer in
market.
x. Bargaining power and competing against big national and
multinationals firms:
Most of small businesses struggle to maintain profit margin while competing against big
firms. Big firms with their big structure and volume of transaction enjoys great bargaining
power to purchase equipment’s and or raw materials, whereas small businesses with local
presence don’t have much options and often end of in higher side on production or
manufacturing cost.
xi. Need of one stop operational need fulfillment:
One of the major challenges for small business is there is no single entity which can fulfill
most of their operational need. That means, small businesses are working with multiple
vendors to meet their daily operational need and which demands more time from the
business owner and sometimes create hassle in managing all different vendors.
xii. Business sustainability plan:
This is one of the key issues for small businesses. Small business lacks in planning and
creating long term plan. Most of time small business stay occupied by their current business
operation that they find very less time and make very small effort in creating business
sustainability plan. Also small businesses stay less prepared for market demand change and
change in market expectation. As per the market study conducted by Bolt organization, 80%
small businesses that do not recover from a disaster are likely to go out of business within 1
month. 51% small businesses find it hard to compete in market and close down their
business or start some other business within 2 years of starting the business. 75% small
businesses without business continuity plan fail within 3 years of disaster and 43% of
businesses never reopened after 5 years of business.
6. Page 5 of 16
[Source: Bolt] [Source: Equifax]
[Source: Equifax]
Stakeholder Analysis:
A. Government and Small Business Administration (SBA):
SBA is the initiative by federal government to protect the interest of small businesses and small business
owners to help them establishing the business and create environment for small business to grow and
compete. Government realized the essential of small market for USA economy and free from
monopolist market. By creating small business act and establishing small business administration, the
federal government with the help of department of commerce and other relevant State and Federal
agencies trying to aid and assist small businesses. Through SBA, federal government’s main purpose is to
support small business in the following areas:
7. Page 6 of 16
i. Enhancing their ability to export
ii. Facilitating technology transfers
iii. Enhancing their ability to compete effectively and efficiently against imports
iv. Proving small businesses access to long term capital.
v. Disseminating information concerning State, Federal, and private programs and initiatives to
enhance the ability of small businesses to compete in international market.
vi. Ensuring that the interests of small businesses are adequately represented in bilateral and
multilateral trade negotiations.
So to serve small businesses SBA lends various different types of loans and aids to small businesses
through partnered banks and financial institutions. SBA loans are small business loans given out by
certain approved banks backed by the Small Business Administration (SBA). Some of the popular SBA
loan programs are mentioned below.
SBA Loan Categories:
i. SBA 7(a) Loan Program
a. 7(a) Express Loan Programs
b. 7(a) Export Loan Program
c. 7(a) Rural Lender Advantage Program
d. 7(a) Special Purpose Loan Program
ii. SBA 504 Loan Program
iii. SBA Micro Loan Program
B. Small Businesses Owners:
a. Women Owners:
As per Government study, in 2007 there are 7.8 million firms owned by women, which is
30% of all non-farms, privately owned US firms. $1.2 trillion dollars of transactions
(sales/receipts) has done by these women own firms, which is 11% of USA total market
transactions. By last conducted survey in 2007, women owned firms paid salary to 7.6
million workers, which is 13% employment among privately held companies. Between
1997 and 2007 women owned business grew 44% twice as fast as men owned
businesses. Though women own businesses are growing substantially, there are still
work needs to be done to reduce discrimination against women and help and support
women owned businesses to create free and friendly market where women can play
equal role as others in contributing to the USA economy and the same time get equal
opportunity to compete and do business.
b. African American Owners:
As per latest government report, in 2007 there were 1,921,881 (above 1.9 million) small
businesses which is 60.5% up since 2000. Out of all black owned businesses 1.8 million
had no paid employee which is 94% of total black-owned firms. Most of the Black
owners prefer health care and social assistance related small businesses. 19% of total
health care related businesses in USA owned by black owners and 15.4% of total social
8. Page 7 of 16
assistance related businesses in USA owned by black owners. As per government census
report in 2007 with 204,032 New York had the largest numbers black-owned firms
which is 10.6% of all black-owned firms, it contributes to $12.8 billion of transaction
sale/receipts, which is 9.3% of all black-owned firm receipts. Georgia and Florida were
next with 183,874 (9.6 percent) and 181,437 (9.4 percent) black-owned firms
respectively, with receipts of $8.9 billion (6.5 percent) and 10.6 billion (7.7 percent)
respectively.
c. Minority Owners:
Minority-owned businesses were largely concentrated in California, Texas, Florida and
New York, representing 55 percent of all minority-owned businesses in the United
States. Texas and Florida gained a larger concentration of minority-owned businesses,
from 12% in 2002 to 13% in 2007, and from 10% in 2002 to 12% in 2007, respectively.
Almost 4-in-10 minority owned firms could be found in the following metro areas:
i. Los Angeles-Long Beach, California
ii. New York, N.Y.
iii. Miami, Florida
iv. Washington, D.C
v. Maryland, Virginia, West Virginia.
vi. Chicago, Illinois
vii. Houston, Texas
viii. Orange County, California
ix. Atlanta, Georgia
9. Page 8 of 16
x. Riverside-San Bernardino and San Francisco, California
Please click on the attached PDF file to see minority small business activity in some of
the major USA cities:
SMOBE_1997_Cities.
pdf
Minority-owned businesses grew more than four times as fast as U.S. firms overall
between 1992 and 1997, increasing from 2.1 million to about 2.8 million firms. The 30
percent growth rate exceeded the 7 percent increase for all U.S. firms, which jumped
from 17.3 million in 1992 to 18.4 million in 1997. Receipts of all minority-owned firms
(excluding C corporations) rose 60% to $335.3 billion in 1997, compared with a 40
percent increase for all U.S. firms over the same period. Addition to minorities, In New
York City, immigrants make up 46% of the incorporated self-employed overall
Immigrants make up 12.5% of small business owners nationwide.
10. Page 9 of 16
Below provided all the relevant PDF file
The_State_of_Minori
ty_Business.pdf
The_State_of_Asian
_Business.pdf
The_State_of_Hispa
nic_Business.pdf
The_State_of_Africa
n_American_Business.pdf
The_State_of_Nativ
e_Hawaiian_and_Other_Pacific_Islander_Profile.pdf
The_State_of_Asian
_Business_by_Gender.pdf
TheStateofHispanicB
usinessbyGender.pdf
The_State_of_Africa
n_American_Business_by_Gender.pdf
TheStateofNHOPIBu
sinessbyGender.pdf
United States by
Industry.pdf
d. Veteran Owners:
As per data from SBA, there were 2.45 million businesses with majority ownership by
veterans, which represents 9% of all USA small business firms. Veterans owned small
businesses employed 5.793 million employees and contributes to annual $210 billion of
11. Page 10 of 16
payroll payments. The 491,000 veteran-owned employers made up 20.1 percent of all
veteran owned firms, similar to the share of employers among all firms, 21.2 percent.
Veteran-owned employers had sales/receipts of $1.126 trillion, 92.3 percent of the
sales/receipts of all veteran-owned firms (with and without employees). One-third of all
veteran-owned firms were found in two industries: 16.9% in the professional, scientific,
and technical services group, and 15.5% in construction. 9.9% shares of veteran owned
firms were also found in other services, 8.9% in real estate and 8.1% in retail trade.
Major states of veteran own businesses are California, Texas, Florida, New York and
Georgia in the order it is mentioned here. South Carolina had the largest percentage at
12.9%, followed by West Virginia at 12.6 %, Virginia at 12.4 %, Tennessee at 11.9%, and
Alabama at 11.8%.
As per Govt. census data, in 2007, 55.4 % of veteran-owned respondent businesses
reported that they were home-based, compared with 51.6 % of all respondent firms.
61.7% of veteran owned firms funded by personal or family saving. Business loans from
banks or other commercial lenders were the second most important source at 9.8
percent for veteran owned firms. 75.1% of veteran business owners were age 55 and
over, with 36.1% age 65 or older, compared with 36.6%and 12.5% of all business
owners, respectively.
C. Banks:
Like small businesses, banks are also one of the key components of USA economy. All major USA
banks have more lending capacity then credit unions, small community banks and other
financial institutions. For small businesses banks are second major source of funding, second to
personal and family funding. Most of the major banks partners with federal governments SBA
program to lend to small businesses which are supported by SBA small business act. Some of the
banks lend money to small businesses outside of government supported SBA loan, but the
percentage of such direct loan is very less. Most of the banks closely work with big national and
multinational established firms and are not much interested in lending money to small
businesses or entrepreneurs. Now in the current macro-economic situations, when banks want
to be more cautious in lending money and in addition, government wants banks to maintain
“excess reserve” by keeping the “safe reserve” money with federal government and in return
government is paying .25% interest on the deposit, for banks small businesses have less priority,
which means for small businesses, it is more difficult to get funded for the business and
continue growing the business or compete with big firms in the current market.
12. Page 11 of 16
In the recent time, under government pressure, banks increased their lending standards which
means less and less small business owner qualify for loan. According to Barlow research 28%
small businesses tapped equity in their homes to finance their businesses during the peak of
housing boom and it means, current effort by government and banks to fix bad mortgage
practices is also hitting small business. The number of bank loans to small businesses dropped
68% between 2007 and 2010, and the dollar value of the loans declined 55% in inflation-
adjusted terms. From 2009 to 2010, bank loans to small businesses fell by 32%, and the dollar
value of the loans declined 11% in inflation-adjusted terms.
13. Page 12 of 16
D. Credit Unions:
As per the past history, credit unions often considered as conservative in their business model,
and when it comes to lending to small businesses, credit unions are not very open in lending and
making relationship with small businesses. In past, government also not showed much interest
in bringing small businesses close to the credit unions. Very few credit unions participates in
government sponsored SBA lending program, in early 2000, federal government decided not to
allow credit unions in participating in SBA lending program, though from February-2002 federal
government again allowed the credit unions to participate in SBA lending program, still there are
very few credit unions participating in the SBA lending program. The other main reason for
credit unions to stay away from lending to small business is the low lending cap or MBL federal
government imposed on credit unions to lend money, till date the lending capacity or MBL of
credit unions is 12.25% of total their total asset. Lately things are changing for credit unions,
when banks are going away from small businesses it creates enormous opportunity for credit
unions to bridge long term relationship with small businesses. In recent day’s credit unions
looking for more opportunities to serve the small businesses, credit union putting continuous
effort to pressurize government to increase lending cap for credit unions. Senate Majority
Leader Harry Reid (D-Nev.) introduced the bill as part of S.509 JOBS bill in April-2012 in the
senate to increase the MBL cap from 12.25% of total asset to 27.5% of total asset of credit
unions failed in senate. However, the credit union small business job bill by chief sponsor, Sen.
Mark Udall (D-Colo.) S. 2231 to increase MBL cap up to 27.5% of total asset is still on hold with
heavy lobbying and pressure from major banks against the bill. If passed it will enable $13 billion
to small businesses and in the first year of its approval it has the potential to create up to
140,000 new jobs without adding any extra burden on taxpayers. Although the bill is still
pending in senate, recently in August 2012, Government designated more than 1000 credit
unions as “low-income credit union” which is addition to previous designated 1100 credit
unions. Though it is a loophole in regulation to impose lending cap, with this designation these
2100 (apx.) credit unions are eligible to lend up to 40% of their total asset.
In summary, it is the right time for credit unions to reach to more than 28 million small
businesses and which contributes to 44% of US payroll.
14. Page 13 of 16
E. Angel investors and other financial institutes:
Currently as banks are tighten their lending to small businesses and credit unions are not very
close to small businesses, angel investors are taking advantage of the situation. Angel investor’s
offers high interest loan to small businesses and often forces small businesses to sell the
businesses within 2 to 3 years of its operation and often angel investors detects the small
businesses on the way of operation and growth plan.
Other Facts:
i. Though Michigan is one of the major state which got big blow in past 3 years
economic situation, still Credit unions which are operating from Michigan are taking
bold steps by lending more business loans. As per the report released by Michigan
Credit Union League & Affiliates on Sep-5-2012, 46% of 309 Michigan credit unions
offers business loan. In the past 12 months in Michigan MBL increased 13.6%
whereas the national average is 8.2%.
ii. In USA small businesses, produce over $6 trillion in GDB each year which itself is
third highest economy after total USA economy and China’s economy.
iii. Though credit unions are lobbying for MBL cap increase, but the fact is most of the
credit union do not lend and 12.5% lending limit on total asset still a big margin for
credit unions which they yet to cross. In addition, if tomorrow MBL cap increased, it
will take two to three years for majority of credit unions to position themselves for
bigger loans or more loans.
iv. The bipartisan Small Business Lending Fund provided more than $4 billion to 332
community banks and community development loan funds to lend the money to
small businesses.
v. In 2011 SBA lend more than $30 billion through banks and other financial institutes.
vi. From 2009 to first quarter of 2012, small business failure rate reduced in compared
to small business birth/opening small business.
1999-2000 2004-2005 2007-2008 2008-2009
Births 574,300 644,122 597,074 518,500
Deaths 542,831 565,745 641,400 680,716
*Figures are March to March. Source: U.S. Census Bureau, SUSB.
vii. Small Business Shares (as per SBA statistics released on Sep-20-2012):
Table 1: Small Business Shares
Kind of Business Share (percent)
Home-based
business
52.0
Franchise 2.0
Sole proprietor 73.2
15. Page 14 of 16
Corporation 19.5
Employer business 21.5
Nonemployer
(business without
employees)
78.5
Source: U.S. Census Bureau, SBO, SUSB.
viii. Summary of small business owner demographic, number of firms own by them and
receipts per firm (as per 2007 census report):
Business
Owner
Demographic
Firms
(millions)
Receipts per
firm
($1,000)
All
businesses
27.1 1,070
Male 13.9 570
Female 7.8 130
Equally
male/
female
4.6 240
African-
American
1.9 50
Asian 1.6 290
Hispanic 2.3 120
Native
American/
Pacific
Islander
0.3 120
Veteran 3.7 450
Publicly
held
0.8 23,860
Source: U.S. Census Bureau, SBO.
ix. Small businesses produced 16 times more patents per employee than large patenting
firms did. Research also shows that increasing the number of employees correlates with
increased innovation while increasing sales does not.
x. 98% small businesses are exporting goods where as 33% are exporting values.