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SMALL BUSINESS : Opening a Small Business : Credit crisis hits small business developmentAs the financial crisis deepens, small business development could be facing more challenges when starting a small business and aquiring loans. "Small business is the engine of the economy," said Bob Zinnecker, a counselor for small business owners at SCORE. Without small business development, Zinnecker says the already weak economy could worsen. But local entrepreneurs are up against the odds as the global credit crunch continues to hinder business loans. "With this latest crisis, it would appear to me, there'll be a tightening of credit rules, which is going to make it more difficult for small business to get needed credit," Zinnecker said. In July, the Federal Reserve reported 65 percent of domestic banks it surveyed had tightened their lending standards for small businesses. That's up 15 percent from April. That means these potential business owners might need higher credit scores and more collateral to start. "They're going to have to have some skin in the game," Zinnecker said. "They're going to have to have some of their own capital in the business." George Smith is looking to open a shop for his wife's craft-making business in the Rochester area. He came to speak to Zinnecker at a workshop Sunday to find out how much money it will take when starting a small business. "Hopefully we'll be able to get a little help if it comes to it," Smith said. Smith hasn't sought out a business loan or investors yet. But the financial crisis isn't scaring him or these other entrepreneurs away from keeping the economic engine running. "You have to be optimistic about it and keep trying," Smith said. "Unless small business is encouraged and people who are interested in small business are given the tools that they need to be successful, it could have a dampening effect on the economy," Zinnecker said. Despite the growing number of bank failures around the country, Zinnecker says regional banking institutions are still going strong. He says the best step a small business owner can take to help get a business loan is to have a strong business plan to present to lenders and investors. By Meghan Backus, Sep 21, 2008 - rochesterhomepage.net Opening a Small BusinessAspiring entrepreneurs are fairly excited when opening a small business. Sharing this news with friends and family usually generates a response referring to...Starting a Small Business IdeaYou have thought out an angle for starting a small business idea that is going to revolutionize the industry. Are you willing...Good Business PracticesTo succeed in business, it's not enough to be the first, the best, or the most competitive. It's not enough to monitor trends so you know when to make strategic changes that will...Ergonomics and Modern Workspace DesignToday, few small businesses need concern themselves with a lot of hard labor, but workers are breaking their backs at a whole new kind of grind, spending up to fourteen hours...Small Business LoansSooner or later most small businesses need to get a small business loan, whether to get the operating capital for business startup or to finance an expansion. But whether...Small Businesses in the U.S.Even today, the U.S. economy is by no means dominated by giant corporations. Fully 99 percent of all independent businesses in the country employ fewer than 500 people...Other Related Articles: General Small Business Advice Feb 1, 2010Here is some general business advice for anyone opening a business right now...Save Money on Microsoft Business Software 1/26/10Many small businesses pay way too much for Windows, Office, and other Microsoft products. They buy software at retail on store shelves or online, one-at-a-time, and miss significant discount ...Consultants - Hiring When Necessary 1/7/10We start a business wanting to do what we like and know best. However, that starting up also requires us to deal with many other facets of business which, ...Small business owners increasingWith big business struggling on Wall Street and a slow economy, new small businesses are becoming popular. Jeannie Carriker Skane just registered her own small business...Credit crisis hits small business developmentAs the financial crisis deepens, small business development could be facing more challenges when starting a small business and aquiring loans.... |
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