When the Lehman Brothers filed for chapter 11 bankruptcy back on September 15, 2008, the economy was at risk. Many other companies followed suite creating the largest job loss since 1974.
What is driving the economy today? Small businesses- companies with fewer than 500 employees. They provide jobs for over half of the private workforce. Eighty-eight percent of small-business people say that the current economy crisis will pass and their business will succeed in the future.
“It’s great how small-business owners such as my self are the one’s assisting in an economic rebound,” said Robert Riley, 42, general manager of Harmony medical technologies. “We’ve been in this situation before and we can certainly get through it again.”
Small businesses have proven to be job creators. The office of Advocacy funded research that these businesses represent 99.7 percent of all firms and they create up to 80 percent of the net new jobs.
“The current crisis has certainly effected how profitable my customers are but I keep a close eye on expenses and operating costs,” Riley said. “This gives me the opportunity to hire new people.”
Barak Obama has plans to release millions of dollars to small businesses in hopes of creating micro-businesses, employing five or less people, to help stimulate the economy. “For the future, this could be good because new markets will open and create long term opportunities,” said Riley.
The difficult part now is waiting out the storm. It seems as though many small businesses people and investors say that Obama’s plan is a great start in boosting the economy. Only time will tell.
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