How did the 2008 financial crisis affect small businesses?

In general, the 2008 financial crisis hit small businesses hard harder than large firms. Some of the ways the 2008 financial crisis affected small businesses were: fewer businesses were started; many businesses laid off employees or closed outright, and commercial lending drastically decreased .

What size business is considered a small business?

What is a small business? The Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees . For industry-level small business size standards used in government programs and contracting, see https://www.sba.gov/ document/support--table-size-standards.

What happens to small businesses in a recession?

Businesses large and small face declines in sales and profits in a recession. Their efforts to cut costs may include layoffs and cuts in capital spending, marketing, and research. Recessions may curb credit access, slow collections, and spur business bankruptcies.

Who will be affected by the recession?

5 of the riskiest industries to work in during a recession, according to economists Real estate. Construction. Manufacturing. Retail. Leisure and hospitality. Oct 28, 2022

What is the most common reason for a small business to fail?

The most common reasons that small businesses fail include a lack of capital or funding , retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.

How much money do you need to be considered a small business?

SBA's Table of Size Standards provides definitions for North American Industry Classification System (NAICS) codes, that vary widely by industry, revenue and employment. It defines small business by firm revenue (ranging from $1 million to over $40 million ) and by employment (from 100 to over 1,500 employees).

What are the 5 SBA requirements of a small business?

In addition to meeting the numerical standards for small, your business must: Be a for-profit business of any legal structure. Be independently owned and operated. Not be nationally dominant in its field. Be physically located and operate in the U.S. or its territories. Jul 2, 2024

What were the main effects of the 2008 financial crisis?

The housing market was deeply impacted by the crisis. Evictions and foreclosures began within months. The stock market, in response, began to plummet and major businesses worldwide began to fail, losing millions. This, of course, resulted in widespread layoffs and extended periods of unemployment worldwide.

What companies were affected by the 2008 recession?

United States Beazer Homes USA. Hovnanian Enterprises. Lennar. KB Home. NVR, Inc. PulteGroup. Toll Brothers.

How were small businesses affected by the Great Depression?

Small businesses suffered great losses during the Dust Bowl and the subsequent Great Depression during the 1930s. From 1929 to 1933, manufacturing productivity decreased by a third, while prices fell by 20%, causing severe deflation. Unemployment skyrocketed from 4% to 25% .

How did the 2008 financial crisis affect employment?

Between October of 2008 and April of 2009, an average of 700,000 American workers lost their jobs each month —contributing to the worst sustained decline in employment since the Great Depression.

In the News: Finance Issues Take Center Stage for Small Businesses

This week the issue of finance, which is a constant challenge for small businesses was front and center. First small business owners said they are not getting the service they deserve from their bank. As a matter of fact, 69% of owners in a survey say they are willing to switch banks for better services.

Keeping with the issue of finance, Splitit has introduced a new service that is going to let you make payments on your B2B purchases. Being able to make payments on purchases for your business when you can’t pay for the whole thing is a game-changer.

If the B2B company you are going to purchase your supplies from chooses to make Splitit available, the process is simple and straight forward. You buy your items and the business then lets you pay in installments.

For small businesses short on funds but with limited credit, it is a lifesaver because you are dealing directly with the business. Additionally, it will strengthen the relationship between both businesses.

Finance

69% of Small Businesses Would Switch Banks

When 69% of small business owners say they would switch to a bank which provides all the features and services they need, there is a problem. Even more distressing is the fact that only 9% of owners say their bank addresses all their small business needs. This means 91% of owners feel banks are not delivering.

Recurring B2B Payments Solution Offered by Splitit

Splitit is launching the first of its kind business-to-business (B2B) payment platform. Splitit Business Payments is going to allow manufacturers and suppliers to offer their buyers an interest-free, installment credit solution. According to the company, this new solution is going to remove the barriers between SMB buyers and sellers.

Economy

Number of Women-Owned Businesses Up 21% Since 2014

If you are already successfully running a women-owned business, pat yourself on the back. You have made it! And if you have a great idea to initiate the one, there is no better time than now. This is because women-owned businesses are soaring. According to the 2019 State Of Women-Owned Businesses Report, the number of women-owned businesses climbed 21% between 2014 and 2019.

Employment

Businesses Will Fight California Bill That Would Turn Contractors into Employees

Silicon Valley giants Uber, Lyft and DoorDash are willing to spend $90 million to lobby against a California bill that would recognize drivers as employees rather than independent contractors. Some companies recognize employees as gig workers to avoid paying payroll taxes, above-minimum wages, overtime and complying with other wage and benefit requirements.

Local Marketing

Surefire Local Debuts New Hyperlocal Marketing Platform for Small Businesses

The debut of Surefire’s All-In-One Local Marketing Platform looks to make local businesses grow by letting them take control of their multi-channel marketing efforts. A multi-channel approach is key in today’s digital ecosystem because small businesses now also operate online. Therefore, bringing the physical and digital worlds together is key to fully optimize ad spend.

Marketing Tips

What is a Creative Brief? 15 Places to Find Examples

A creative brief is an essential document for businesses and agencies that work on any creative projects. It is used to describe every aspect of a creative campaign or project so that the people working on it know exactly what is expected.

45% of Email Marketers Struggle for Inbox Attention

The 2019 State of Email Marketing report reveals email is the most effective and widely used marketing channel available today. However, getting inbox attention still remains the biggest challenge for an email marketing campaign. The report says 45% of its respondents find the competition for attention in the inbox a challenge.

Startup

Can You Use a Business Bank Account for Personal Use?

A reader asks: Recently I was hired as a bookkeeper for a small manufacturing business. My boss, the owner, uses the business bank account for personal use — and it’s driving me crazy! He withdraws money with a debit card for personal expenses. Last week his wife bought a big screen TV for their home using a blank check he signed from the business account.

Fiverr Launches New Architecture and Interior Design Categories

Fiverr recently released some new products designed to meet the needs of commercial and residential building and design. As a result, freelancers in the architecture, interior design and landscape design space can pair up with clients looking for their services.

Businesses Take Up Slack as Governments Abandon Social Responsibility

It now seems that many governments around the world are backing off from social responsibility. They no longer try to alleviate all the social problems in their counties. However, with a decade of economic growth, for-profit companies are taking up the slack.

Taxes

How Much Is Personal Use of a Company Vehicle Worth?

Common practice in many businesses allows owners and employees to drive company cars, trucks, or vans for personal reasons. You’ll notice this particularly with small businesses. This may include commuting. As a result, businesses need to treat this as personal use. Or owners and employees may have access to a company vehicle after work for any reason.

Technology Trends

New Shutterstock Tool Helps Your Business Make a Creative Brief

The launch of Shutterstock’s Smart Brief addresses the growing visual demands of today’s digital ecosystem. But with more marketing channels available to businesses, creating the right content to represent your brand is critically important. Smart Brief looks to simplify and expedite the process of developing your creative brief so creators can get started with your project right away.

Unify Square Expands PowerSuite to Better Manage Business Collaboration

Unify Square, announced on October 1 the extension of its PowerSuite Cloud Managed Services (CMS) offering. The new service will make it easier and more cost-effective to manage and secure Unified Communications room systems. At the same time, it will improve and streamline the way people are communicating and collaborating today.

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This article, “In the News: Finance Issues Take Center Stage for Small Businesses” was first published on Small Business Trends