Comments on: Job creation datapoints of the day http://blogs.reuters.com/felix-salmon/2010/03/08/job-creation-datapoints-of-the-day/ A slice of lime in the soda Sat, 25 May 2013 16:48:33 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: SamGreenburg http://blogs.reuters.com/felix-salmon/2010/03/08/job-creation-datapoints-of-the-day/comment-page-1/#comment-12985 SamGreenburg Mon, 29 Mar 2010 16:41:05 +0000 http://blogs.reuters.com/felix-salmon/?p=2879#comment-12985 I work for a small business finance company. The majority of our clients, use the money for expansion, to manage cashflow, invest in inventory etc... Sometimes the business owner owes back wages or can't make payroll, so we end up saving job's, but it is less common that the capital ends up creating jobs. That being said, we have a comparatively lax approval process, and getting funding from us is generally more expensive than getting a loan from a credit union. It's possible that business owner's are more likely to spend credit union loans on hiring additional employees. I agree with ameyer. In general the availability of capital helps small business grow. Thriving small business, means more jobs in the long run and a more robust economy. Ultimately jobs are created by demand. Well used capital creates demand not jobs. www.fundingapp.com I work for a small business finance company. The majority of our clients, use the money for expansion, to manage cashflow, invest in inventory etc… Sometimes the business owner owes back wages or can’t make payroll, so we end up saving job’s, but it is less common that the capital ends up creating jobs.

That being said, we have a comparatively lax approval process, and getting funding from us is generally more expensive than getting a loan from a credit union. It’s possible that business owner’s are more likely to spend credit union loans on hiring additional employees.

I agree with ameyer. In general the availability of capital helps small business grow. Thriving small business, means more jobs in the long run and a more robust economy. Ultimately jobs are created by demand. Well used capital creates demand not jobs.

http://www.fundingapp.com

]]> By: SUNERISE http://blogs.reuters.com/felix-salmon/2010/03/08/job-creation-datapoints-of-the-day/comment-page-1/#comment-12686 SUNERISE Mon, 15 Mar 2010 11:55:56 +0000 http://blogs.reuters.com/felix-salmon/?p=2879#comment-12686 http://www.coomararunodaya.com/ http://www.coomararunodaya.com/

]]> By: nurse74 http://blogs.reuters.com/felix-salmon/2010/03/08/job-creation-datapoints-of-the-day/comment-page-1/#comment-12680 nurse74 Sun, 14 Mar 2010 00:28:42 +0000 http://blogs.reuters.com/felix-salmon/?p=2879#comment-12680 I have opened a home care company and could use a small loan to get it up and running. I dont have the best credit would I still qualify for goverment assistance for a small business ? I already have 30 employess and counting. which type of finacial institue is more likely to help a federal credit union or a bank ? Im not sure if you answer questions like this any direction would be appreciated. I have opened a home care company and could use a small loan to get it up and running. I dont have the best credit would I still qualify for goverment assistance for a small business ? I already have 30 employess and counting. which type of finacial institue is more likely to help a federal credit union or a bank ? Im not sure if you answer questions like this any direction would be appreciated.

]]> By: ameyer http://blogs.reuters.com/felix-salmon/2010/03/08/job-creation-datapoints-of-the-day/comment-page-1/#comment-12523 ameyer Tue, 09 Mar 2010 01:56:03 +0000 http://blogs.reuters.com/felix-salmon/?p=2879#comment-12523 Small business hire people in response to increased demand, not availability of capital. If a small business is looking for capital, whether it is in the form of a loan or an investment, it's risky to hire people with that money. Maybe if you're getting a large angel or VC investment, you'd use that money to hire people, but if you're taking out a loan, its probably not directly for hiring. Hiring is more likely a side effect of deploying that money elsewhere. Small business hire people in response to increased demand, not availability of capital. If a small business is looking for capital, whether it is in the form of a loan or an investment, it’s risky to hire people with that money. Maybe if you’re getting a large angel or VC investment, you’d use that money to hire people, but if you’re taking out a loan, its probably not directly for hiring. Hiring is more likely a side effect of deploying that money elsewhere.

]]> By: polit2k http://blogs.reuters.com/felix-salmon/2010/03/08/job-creation-datapoints-of-the-day/comment-page-1/#comment-12512 polit2k Mon, 08 Mar 2010 18:13:44 +0000 http://blogs.reuters.com/felix-salmon/?p=2879#comment-12512 @Cumudgeon: Yes, that's my thinking too. The normal source is family and friends but as the pool of debt free citizens dwindles and loans are the only way to get off the ground, once more the overall debt increases. VC's are no solution unless you have a track record and are planning on being much more than a small business with a clear exit strategy for them. The frequent mention of banks not lending to business normally means that a business needs risk capital. It used to be that low gearing was a good thing:-) @Cumudgeon: Yes, that’s my thinking too. The normal source is family and friends but as the pool of debt free citizens dwindles and loans are the only way to get off the ground, once more the overall debt increases. VC’s are no solution unless you have a track record and are planning on being much more than a small business with a clear exit strategy for them. The frequent mention of banks not lending to business normally means that a business needs risk capital. It used to be that low gearing was a good thing:-)

]]> By: Curmudgeon http://blogs.reuters.com/felix-salmon/2010/03/08/job-creation-datapoints-of-the-day/comment-page-1/#comment-12508 Curmudgeon Mon, 08 Mar 2010 17:31:57 +0000 http://blogs.reuters.com/felix-salmon/?p=2879#comment-12508 @polit2k: I'm not sure how a small business would raise equity capital except through an angel investor or VC (family members possibly, but that opens up entirely new issues). Angels are difficult to get access to and typically don't invest in more than one or two at a time, and VCs won't touch you unless you have an exit strategy (acquisition or IPO) that has a good likelihood of making them a lot of money. These options leave out the vast majority of small businesses in the US. @polit2k: I’m not sure how a small business would raise equity capital except through an angel investor or VC (family members possibly, but that opens up entirely new issues). Angels are difficult to get access to and typically don’t invest in more than one or two at a time, and VCs won’t touch you unless you have an exit strategy (acquisition or IPO) that has a good likelihood of making them a lot of money. These options leave out the vast majority of small businesses in the US.

]]> By: polit2k http://blogs.reuters.com/felix-salmon/2010/03/08/job-creation-datapoints-of-the-day/comment-page-1/#comment-12507 polit2k Mon, 08 Mar 2010 16:32:00 +0000 http://blogs.reuters.com/felix-salmon/?p=2879#comment-12507 Is it too hard for such small businesses to raise equity capital or some non-debt equivalent? Is it too hard for such small businesses to raise equity capital or some non-debt equivalent?

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