Even with the economy on the mend, many small businesses are still feeling the pinch of the recession.
A new survey from CareerBuilder reveals that 34 per cent of small businesses (organizations with 500 employees or less) do not think or are unsure if their companies will be able to access the credit needed in 2010. Also, 15 per cent of small businesses said that an inability to access credit this year will prevent them from adding headcount.
As the economy faltered and credit was more difficult to obtain in 2009, small businesses faced tough challenges. Seventeen per cent of small businesses reported they were unable to access the credit needed to support their businesses in 2009, while more than one-quarter (26 per cent) of those companies who could not obtain credit were unable to add employees. On a positive note, of those companies who were able to access credit last year, 73 per cent were able to hire new employees.
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“While small businesses were hit hard during this recession, they will play a vital role as the economy bounces back,” said Brent Rasmussen, President of CareerBuilder North America.
“After past recessions, small businesses re-energized the economy by driving innovation and putting people back to work. The majority of small businesses we talked to say they are confident they will not lose their businesses in 2010, and many are hopeful that they will be able to add staff to support their bottom lines and remain competitive.”
While small businesses are cautiously optimistic as they begin the new year, they are still preparing to face some hurdles. Here are some of their organization’s top challenges would be for 2010:
• Marketing expenses and building awareness: 26 per cent
• Attracting and hiring top talent: 22 per cent
• Gaining access to credit: 11 per cent