The Small Business Authority has released its latest survey addressing the current state of the overall small business economy.
Released Friday, the SB Authority Index shows a slight improvement for the month of January, rising 0.67 percent on the back of improvements in the Russell Micro-cap Index, retail sales and Newtek Visa/MasterCard processing volume.
"The small business economy seems to be moving up and forward in direction and magnitude," said Small Business Authority President and CEO Barry Sloane. "The Federal Reserve's zero-based interest rate policy has caused tremendous liquidity across the United States and worldwide. As stock prices rise, it's indicative of an easier flow of equity capital and venture capital to small businesses."
Sloane added that a rising index suggests the equity cost of capital is declining, which signifies a greater availability of credit and, hence, small business growth.
However, an ongoing debate has not yet resolved whether small businesses' core problems have stemmed from a dearth of credit or poor sales.
As more entrepreneurs move to form an LLC in New York, it is important that they understand how capital markets may impact their ability to finance their ventures. A recent study by Crain's found SBA-backed loans in the Big Apple grew by 39 percent in 2010 over the previous year.
Tags : financial management, incorporation news, ny, small business management
Posted: Feb 25th, 2011