The NIFB’s April report notes that as “small firms produce half the private sector GDP, it is hard to envision a sustained recovery without their participation.”
High Frequency Economics , of Valhalla, New York, called the report “so weak that if the rest of the economy were in the same shape we would expect GDP to be contracting at an annualized rate of about 5%.”
Credit is a concern for small business owners as well. NFIB published a white paper in February, “Small Business Credit un a Deep Recession,” indicating that credit is still very elusive for owners of small businesses. Uncertainty extends to sales, with 60% of firms surveyed reporting “lower real sales” or “much lower” sales–34% for 2009 compared with 2008.
Comments? Please send them to [email protected]. Kate McBride is editor in chief of Wealth Manager and a member of The Committee for the Fiduciary Standard.