Recession was and is still the main issue that irritates and harasses small business building and funding as well. Why? The answer is simple, because nobody trusts the world anymore. People are not ready to take risk with what they have in hand already, at least for the past two years. There is a rumor going around that the money to finance a new business venture is more difficult to come by today than it was two years ago before the recession. It is perfectly understandable if you believe this rumor. Capital for businessventures has dried up and investors are seeking more established companies to sink their resources into, or so the story goes. After all, the past two years have been difficult for many small businesses and those who have invested in them.
Now, look at the flip side of the coin. The recession is over. Economic indicators are showing growth in the economy and a decline in unemployment numbers. People are starting to spend money again and the gloom and doom predictions of the ultra-conservatives and pessimists have not come to pass. Some of the established companies of the past half century have gone out of business and some of the newer ones have survived. Can an investor in this climate really be jaded against new ventures?
Regardless of whether you are in an older niche market or a brand new technology category there is a good chance that you’ll be successful in what appears to be a market ready to surge after a long drought. So if you take a moment to contemplate the question you will find that there really is no reason right now for either private investors or public lending institutions to refuse start-up capital for business ventures. If this recession proved anything to lenders it is that the status quo and business as usual cannot be counted on to be consistent anymore.
What everyone is trying to do is that when trust and integrity is everyone’s main goal, then and only then business is going to be the easiest thing that can be built or established. In other words, it takes time for people to get back on track when it comes to having business or funding this business.
iBank - Making small business happen