Small Business Finance News
SMBs May Benefit From Recession
Written by James Conroy
Published: 5/4/2009
The businesses that can survive the current economic state may see increased sales because of a lack of competition.
The recession has taken a toll on many small businesses throughout the U.S., but despite the hard economic times some businesses are flourishing.
The state of the economy has forced many small businesses to close their doors for good as they struggle to make ends meet. But according to Don Sabbarese, director of Kennesaw State University's econometric center, that might be good news for small business owners who have been able to survive this far.
Sabbarese told the Atlanta Journal-Constitution that the closing of some competition could mean that the surviving small businesses see an uptick in traffic and sales.
"How does that affect people who are left standing? It certainly can't hurt," he said.
And while so many have failed to make their business stick, a number of entrepreneurs say this is a good time to start a small business.
Jeff Miller who along with Brian Babst plan on opening a café in Decatur, Georgia, told the paper that he thinks the economy is ready to rebound.
"I think it's starting to turn right now," he said.
Miller may be right as the recent Discover Small Business Watch - a measure of small business optimism - increased for the third month in a row.
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