As we near the halfway point of 2014, it is a good time to take a look at some of the big challenges small businesses continue to face.
In an article addressing key issues small businesses will face in 2014, Angus Loten and Sarah E Needleman look at three big challenges for 2014 and beyond. In summary, they discuss the following:
- Accessing Capital
Although tight credit markets are beginning to loosen up, many small business owners are still subsidizing their businesses with personal assets. There is still a tight hold on the ability to access a loan from the bank unless you can check all the relevant boxes. However, a popular new way of businesses seeking small dollar investors online is through crowdfunding, an innovative approach to creating a source of growth capital for smaller businesses.
- Concerns over Health-Care
Small businesses continue to be concerned with the prospect of higher premiums from health insurance companies. With the new law that all Americans must carry health insurance, or face a penalty, more uninsured workers are taking advantage of their employers’ healthcare plans, which in turn, boosts the overall cost of the plans. There is hope that once the technical glitches in the government’s online marketplace for coverage for Small Business Health Options Program (SHOP) are overcome, more small businesses will eventually have access, encouraging more competition, and lowering the premiums. However small businesses with 50 or fewer workers will be unable to apply until November of this year at the earliest.
- Taxes, Subsidies and Federal Policies
Long-term commitments are harder for small businesses when it comes to hiring and spending plans due to uncertainty over taxes, subsidies and federal policies. While there has been resolution on some of the issues addressed in the article, there is still caution and concern over future dips in the economy.
The economic future is slowly improving for small businesses, and while they still have to navigate through the choppy waters of economic recovery, there are alternative ways to put their money to work, and it is based around invoice factoring. Selling accounts receivables to an invoice factoring company in return for immediate working capital is becoming a popular financing tool for all sizes of company. Improving cash flow without having to add a burden of debt is a proven and widely accepted way of financing operational expenses and helping with company growth.
