Since small businesses employ roughly half of all private sector employees, according to the U.S. Small Business Administration's estimates, it's important to stimulate job creation among these firms. While the economy is still recovering from the recession, hiring has lagged, resulting in discouraging unemployment rates.
The latest Small Business Employment Index by CBIZ Payroll Services found rates continue to sink, with hiring dropping 1.47 percent during July among companies with 300 or fewer employees.
"Owners … are still focused on, and concerned with, anticipated sales, taxes and regulation. It is possible that if the entrepreneurs we work with were able to better predict the changes to the latter two items, via action by Congress, they may be willing to invest in additional labor," said Philip Noftsinger, business unit president for CBIZ.
If owners are on the brink of expansion, but lack the available finances to bring on additional employees, there are a number of options they might want to consider. Rather than purchasing new equipment, they might consider finance leasing, while a merchant cash advance from a lender such as Five Point Capital can provide owners with a cash flow cushion that enables them to make necessary investments.