Advocacy Releases 2009 Small Biz Economy ReportFebruary 1, 2011
Late last week, the U.S. Small Business Administration Office of Advocacy (Advocacy) released their annual report, The Small Business Economy: A Report to the President, which reviewed the 2009 economic environment for small businesses. According to the report—and in-line with NSBA’s own economic reports, small businesses faced challenging economic conditions throughout 2009, however, by the end of the year, things appeared to be looking a bit better.
In the first three quarters of 2009, small businesses accounted for almost 60 percent of the net job losses, with the greatest losses in the first quarter. By the third quarter, net small firm job losses were one-third what they had been in the first quarter.
Regarding small business lending in 2009, the quarterly Senior Loan Officers Opinion Survey on Bank Lending Practices showed tightening of lending standards and weakened demand for small C&I loans—figures that were more pronounced early in 2009 than later in the year.
“In the beginning of 2009 many small businesses felt as if they were at the brink, not knowing how or if they would survive,” said Chief Counsel for Advocacy Winslow Sargeant. “This report shows that the actions taken by the federal government were beginning to be felt in the small business economy by the end of the year, and that there were signs entrepreneurs were again looking ahead toward new opportunities for small business growth.”
Underscoring Advocacy’s report that the small-business climate continues to improve, NSBA will be releasing its 2010 Year-End Economic Report tomorrow which shows that the business climate toward the end of 2010 was better than it was in early-2010.
Please click here for more on Advocacy’s report.