Many small business on the verge of closing
With the rise in gas prices and food prices, many small business owners, especially restaurants are having a difficult time staying open.
A National Small Business Association survey of 500 small business owners found that sales and profits had dropped and job growth was at the lowest point in 15 years, problems that could have a significant impact on an already shaky U.S. economy.
The survey also found that 71 percent of business owners have a “negative outlook” on the economy compared to 43 percent a year ago; confidence in their business’ success dropped from a high of 81 percent a year ago to 70 percent now.
It seems that many consumers are bypassing small businesses and seeking out bargains in places like Costco Wholesale Corp., which reported a 32 percent jump in its fiscal third-quarter profit.
What do think? Are rising prices hurting you and your business?
Tags: economy, entrepreneur, small-business, startup
POSTED IN: Entrepreneurship
1 opinion for Many small business on the verge of closing
Geeta Bose
Jul 17, 2008 at 4:01 am
Yes, small businesses that mostly depend heavily on economic trends feel the pinch sooner. Those that do not have direct dependence feel the pinch a little later. But then, the latter have some time to hedge their risks.
In India, the rise in fuel prices have had a cascading effect on all industries. The worst hit are real estate and retail who depend heavily on raw material delivered through transport.
However, business like ours that depend on intellectual property, innovation, and design skills have not yet felt any direct impact of inflation. But we have to be extra careful. We have to hedge our funds, plan our pipeline well, and plan our outgoings too.
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