Small Business affected by Financial Crisis
The purpose of this research study is to review how small businesses are affected by economic crisis, to assess the effects of marketing strategies on business performance and to identify strategies that can help small businesses grow in troubled times. The following 5 literature reviews attempt to demonstrate and support the hypothesis.
In a research article by Jeffries (2011) stated how there are four ways to bounce back after a recession. The four recommended strategies to help your business bounce back after a recession are innovation, looking into government programs and partnerships, work on developing future businesses and rethinking how you do business. It is hypothesized that even though the recession is technically over, there continues to be a lack of financing and a slow come back. The results in the study showed that the lack of access to capital to grow these small businesses was likely because of slow or lost sales (44%). This would force small businesses to close. Small businesses continue to feel the effects of the financial crisis with their lost of sales and their inability to obtain needed funding. In a survey from American Express OPEN spring small business monitor showed that the biggest concern of small businesses was cash flow that came at 66%. Because of their concern of cash flow they will need to cut their expenses. The results indicate that small businesses continue to struggle after the financial crisis due to lack of capital and resources.
In a research article by Keegan (2009) is on how seven local banks from Ulster County collaborated together to create a pool of over one million dollars to help small business effected by the economy. These banks developed this program to help small businesses access capital that have been previously declined a traditional loan. With the help of this program it was going to help small businesses affected by the financial crisis...
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