The small business growth imperative
Banks and credit unions are constantly being asked to support small businesses as an engine of growth for the u.S. economy. The cry from politicians and trade organizations for several years has been: “lend more.”
Politicians have correctly identified small businesses as a critical sector of the u.S. economy, and one that has been a decreasing area of focus for u.S. banks and credit unions, by some metrics. meanwhile, bank leaders are constantly touting their focus on small businesses both as a means of community development and a path to shareholder returns. So what is really happening?
First, small businesses are undeniably critical drivers of the u.S. economy, across sectors and through the cycle. as defined by the u.S. Small Business authority, small businesses account for over 99 percent of all employer firms in the u.S., nearly half of private sector jobs, and two-thirds of newly created jobs. and while we associate small businesses with “main street,” they also account for over one third of total high tech employment, and 98 percent of exporters.