This week, Treasury Department Secretary Timothy Geithner told an audience of reporters that banks and creditors are now much more equipped to finance the capital needs of a recovering economy, suggesting recent improvements in lending and capital access will allow new startups and entrepreneurial ventures to come to fruition.
Archive for February, 2011
Although the California business sales market fell by 6.6 percent in 2010 over the year before, the state's burgeoning clean energy sector may boost acquisition activity in coming years, as a trend of green energy consolidation has begun to emerge throughout the Golden State.
Private companies are sitting on more than $1.9 trillion in cash, accounting for 7.4 percent of total business assets – the highest rate in more than 50 years, according to data released by the Federal Reserve last September.
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It is interesting to note how the business sales market has paralleled that of the banking industry in recent years, with sales declining at similar rates as that of bank closings. The Federal Deposit Insurance Corp closed 157 banks last year, up from 140 in 2009, while the number of completed business sales continued to fall through 2010.
As the recession has forced an industry-wide credit crunch in recent years, many small businesses and entrepreneurs forming a business have been seeking out personal or bootstrap financing methods to fund their ventures. However, recent news suggests credit may become more available this year.
As tax season approaches and small businesses begin taking a look at their budgets in anticipation for the coming year, it may be a good time to look at the 2011 outlook, as well as recent studies and economic indicators.
While the national unemployment rate has fallen in recent months – dropping to 9 percent in January, compared to 9.
A number of recent studies from Thomson Reuters, PayNet and the National Venture Capital Association, among others, have found borrowing among small businesses to be up in recent months.
That includes venture capital, angel investment and bank lending and suggests that, along with gains in employment statistics, the economy is beginning to recover.
Although the economy has been steadily improving in recent months, there remains a number of obstacles to full-scale recovery – a situation that has prompted many small businesses to utilize any possible tax breaks or write-offs.
Whether you are a retail entrepreneur or a franchise operator, you know that economic recessions entail poor sales and lackluster payments on financed purchases. However, recent improvements in the economy may suggest that retailers will soon see better conditions in coming months.
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American corporate titan General Electric announced this weekend that it plans to purchase John Wood Group, a company that provides systems for oil drilling, for $2.8 billion in order to further expand its energy business.