Thursday, August 25, 2011

Overlooked Opportunities for Small Businesses

Ashley Metcalf

It’s easy to get overwhelmed by the harsh criticism centering on our political and economic condition here in the US-especially if you are a small business owner depending on consumer confidence, stability and continued state resources. Given the recent downgrade of US debt and everlasting volatility in the equities market, small businesses have been struggling to gain access to capital, making large expenditures such as hiring, bonuses or expansion difficult to address.

Small businesses from around the US are seeking assistance from places like Biz2Credit, an online credit marketplace, because of the downturn in our economy and the hardships that accompany it-one being access to credit. One firm based in Manhattan named Talents Combine India Inc, needs over $1 million over the next three months to hire some 25 additional programmers for new business. CEO Joe Kadi was denied by numerous large banks when he was seeking capital, and turned to Biz2Credit which helped him turn his business around. Joe Kadi believes we can no longer rely on banks or the government, and says other small businesses will realize this for themselves too.

According to Rohit Arora, CEO of Biz2Credit, businesses continue to have a tough time gaining access to credit, even if they are eager to expand. “As the US economy slows down, small business growth will suffer again” said Arora, noting he has also suspended hiring at his own company, which employs 30. Arora also explains that credit is continuously tightening, and he doubts the Federal Reserve will be able to keep the lending rates near zero. So does this mean expansion for your company has only a doomed fate? I believe not.

Other than depleted hopes and contraction measures, there are some overlooked options for small businesses who seek expansion and access to capital. The Small Business Administration, or SBA, offers online resources, personal counseling and assistance to small businesses across the US.

Most small businesses never think of foreign markets or realize the opportunities that reside outside US borders. US businesses benefit from a competitive advantage for producing high-quality, innovative goods and services; responsive customer service, and sound business practices. Although exporting requires time and commitment- the return will be well worth the investment.

Some positives to exporting include an increase in gross profit, lower transportation and communication costs, reductions in trade barriers, a reduced dependence on the US market, an extended sales potential, and a stabilized seasonal market and sales fluctuation.

If you are interested in exporting abroad, visit the SBA's website to gain access to government programs and services that support exporting. There are SBA senior trade specialists willing to help on your journey.

www.sba.gov/international