How the Tech World Can Help Small Businesses

SAN JOSE, CA (January 23, 2018) - Devin Wenig, CEO of eBay shares a compelling Op-Ed in USA Today highlighting the importance of connection and collaboration between the tech industry and the small business world.

“Creating pathways between remote areas and urban centers is beneficial in recirculating economic prosperity. Instead of painting the tech sector and innovation as job destroyers, we need a new model of public-private tech partnership where technology companies and public officials come together to rev the small business engine,” Wenig writes.  

Read the entire article here.

Entrepreneurship is Growing in the US - Especially Among Women

BABSON PARK, MA (January 22, 2018) - More than 25 million Americans are launching or operating new businesses in the past two years,  according to the Global Entrepreneurship Monitor 2016 United States Report by Babson College.

The influence of women in business is expanding, too - the rate of entrepreneurship among women has grown 1%, while holding steady for male entrepreneurs. Women are innovating more than ever, with 40% of female business owners introducing services or products that are new to consumers and not yet offered by competitors. Overall, Americans are developing new and groundbreaking products at the highest rate in 15 years. 

Read the entire article here.

Big Data for Small Businesses

NEW YORK, NY (January 19, 2018) - Big Data and artificial intelligence have been hot topics in the media lately - and yet most entrepreneurs don’t realize that they can use these tools in their own business.

“The majority of techniques used in Big Data and the Internet of Things (even some artificial intelligence) don’t require a large budget or a huge staff. They only require a willingness to learn and experiment,” the business blog SmallBizTrends reports.

The blog presents a fascinating list of books on Big Data, introducing the opportunities that it offers for business and offering ways to utilize these resources.  

Read the entire list here.

Bringing Down Barriers for Minority Entrepreneurs

NEWARK, NJ (January 18, 2018) - New Jersey established the Urban Plus Program in a new law on Tuesday, which will collaborate with the Economic Development Authority to provide support and access to financing for underserved minority business owners.

The Urban Plus Program is one step forward in addressing a significant problem: lack of access to capital for women and minority small business owners.

“Minority company ownership is up 38 percent over five years. These firms provide 7 million jobs. Hispanics and African-Americans represent 25 percent of the population. Yet only 1 percent of [venture] capital flows to Hispanic or black entrepreneurs. Does anyone honestly believe these communities are the source of just 1 percent of our best business ideas?” Maria Contreras-Sweet of the Small Business Administration asked.

Read the entire article here.

A Guide to Navigating the New Tax Law

WASHINGTON DC (January 17, 2018) - The Tax Cuts and Jobs Act offers a 20 percent deduction for business income from limited liability companies and S corporations, causing many entrepreneurs to contemplate whether they should incorporate their business. However, the new law provides numerous stipulations that are important for business owners to understand.

CNBC offers a straightforward guide to evaluating and maximizing the tax law for your business. Read the entire article here.

Smart Strategies for Women Entrepreneurs

NEW YORK, NY (January 16, 2018) - Women in business face unique challenges - and author Kerry Hannon at Forbes offers some valuable strategies to help small businesses thrive. Finding mentors, seeking financing, and staying curious are among her tips for developing habits for success.

Hannon’s article also emphasizes the unique strengths women may bring to work: “Many entrepreneurial successes depend on an exquisite form of human understanding and organizational leadership that women have the edge on,” author Michael W. Sonnenfeldt writes.

Read the entire list here.

The Best States for Female Entrepreneurs in 2018

NEW YORK, NY (January 11, 2018) - Georgia, Florida, Maryland, California and Colorado are the top five states for women entrepreneurs, according to a study by business blog FitSmallBusiness based on statistics on women-owned businesses.

Female business owners are on the rise. “The U.S. is home to over 11.3 million female-owned businesses which employed around nine million people and generated over $1.9 trillion in 2016. Over the last nine years, the number of female-owned businesses has grown five times faster than the national average,” the article states.

FitSmallBusiness analyzed each state based on statistics including percentage of women-owned companies out of total businesses, percentage of business revenues from women-owned companies, and percentage of employees working in women-owned companies.

Read the entire article here.

The Downside of Crowdfunding

FONTAINEBLEU, FRANCE (January 10, 2018) - New research indicates that business projects that market themselves as both innovative and useful have a higher risk of failure on crowdfunding platforms.

Crowdfunding has become a popular approach to business financing in recent years, with the advent of Kickstarter and similar platforms. However, a new study by INSEAD business school, the University of Technology Sydney (UTS), HEC Paris and Singapore Management University shows that when projects marketed themselves as being both “novel” and “useful”, funding dropped by 26%.

“Prior research has shown that products that are novel and useful typically succeed in the marketplace. But when projects make both claims, backers either assume a product’s benefits are inflated, that it carries a high risk of failure or that it divides the crowd between believers and skeptics, making it hard for backers to pick a side,” says Professor Amitava Chattopadhyay of INSEAD, who co-authored the study.

This suggests a troubling trend for entrepreneurs seeking financing through crowdfunding, where audiences may be fickle.

Read the entire article here.

Small Business Owners Struggle to Find Financing

Seattle, WA (January 9, 2018) - The demand for small business loans is rising, and yet business owners are finding it difficult to obtain bank loans.

Small business demand for financing rose 3.6 percent, from 36.2 to 37.5 in the third quarter, and yet 61% of small business owners reported difficulty in acquiring a loan, according to a study by Pepperdine University’s Graziadio School of Business and Management and Dun & Bradstreet Corp in the Seattle Times. Only 36 percent of small businesses were able to get bank loans in the past three months, compared to 69 percent of mid-size companies.

Read the entire article here.

The Rise of Veteran-Owned Small Businesses

NEW YORK, NY (November 15, 2017) In the United States, veterans are a significant force in the world of small businesses. One in four veterans own a small business, a rate that is 7.7% above the national average - that's 2.5 million veteran entrepreneurs.

In "The top places in America for veteran small business owners", economist Lucas Puente presents the results of a national survey by Thumbtack and writes,

"The other thing veterans point to as being a catalyst to their success is being part of a supportive community. While every business’ needs are different, being in a place where veteran-owned businesses are valued by clients, bankers, suppliers, and others can help provide a leg up in the potentially harrowing process of starting and growing a small business."

Read the entire article here. 

Exposing Peer-to-Peer Lending Myths

 CLEVELAND, OH (November 13, 2017) The Federal Reserve Bank of Cleveland has released a new report uncovering the predatory nature of peer-to-peer (P2P) lending services that leave many Americans facing unexpected and dire consequences:

"We find that, on average, borrowers do not use P2P loans to refinance pre-existing loans, credit scores actually go down for years after P2P borrowing, and P2P loans do not go to the markets underserved by the traditional banking system. Overall, P2P loans resemble predatory loans in terms of the segment of the consumer market they serve and their impact on consumers’ finances. Given that P2P lenders are not regulated or supervised for antipredatory laws, lawmakers and regulators may need to revisit their position on online lending marketplaces."

Read the entire report "Three Myths about Peer-to-Peer Loans" here. 

Celebrating National Women's Small Business Month

WASHINGTON DC (November 10, 2017) Female business owners are on the rise, according to reports by the National Women's Business Council.

October was featured as Women's Small Business Month, marking the 29th anniversary of President Ronald Reagan's signing of the Women's Business Ownership Act, creating the National Women's Business Council and ensuring that banks could no longer require women to have a male co-signer for business loans. Here's a look at some recent progress:

• From 2002 to 2012, women-owned businesses increased at a rate 2.5 times the national average: 52% vs. 20%. Employment in women-owned business grew at a rate 4.5 times the national average: 18% vs. 4%.

• In 2016 there were 11.3 million women-owned businesses in the US, with nearly 9 million employees generating more than $1.6 trillion in revenue.

The report concludes: “The growth of women business enterprises over the last ten years is unprecedented; yet, women still lag behind, in earnings and receipts, and in the amount of venture capital and other forms of equity investment that they receive. This is a unique time, in many ways a perfect storm, and it is imperative that we work harder and faster to unlock the tremendous potential of women business enterprises,” said Carla Harris, Chair, National Women’s Business Council.

Click here to view the entire report. 

Survey: Millennial Entrepreneurs Plan to Expand and Seek Business Loans

RALEIGH, NC (November 7, 2017) In the next six to twelve months, 82% of millennial business owners plan to expand their business, and 34% plan to do so with the help of loans, savings or credit cards, according to First Citizens Bank's Small Business Forecast Survey. 

Click here to view the survey. 

Why You Need Financing as a Woman Business Owner

NEW YORK, NY (October 10, 2016) excerpt via BUSINESS 2 COMMUNITY - Women business owners are on the rise across the United States, as entrepreneurship offers some uniquely attractive benefits. 

"For one it allows them to bypass the 'glass ceiling'. The flexibility of being 'your own boss' is an environment which allows many women to thrive – you are in charge of your own career advancement!" the business blog Business 2 Community reports.

However, the blog continues: "Running a business as a woman also comes with a unique set of challenges- particularly financing. Not all women know about their resources and some don’t even bother apply for lines of credit, assuming they won’t get accepted. Instead, they rely on their own personal funding."

Click here to read the entire article.

5 Tips for Getting Your Small Business Loan Approved

WASHINGTON DC (October 9, 2017) The greatest challenge facing small businesses in 2016 was accessing necessary credit, according to a survey by the Federal Reserve. The survey revealed that while 72% of larger companies were approved for loans, only 45% of small businesses successfully secured financing. 

Kiplinger Personal Finance presents a guide to understanding bank loans.  

Click here to read the entire article.

Women-Led Businesses Find Support in Rochester

ROCHESTER, NY (October 6, 2017) excerpt from THE ROCHESTER BUSINESS JOURNAL - The Rochester region is open for business for women-owned enterprises, and several local female business leaders report that they have been able to find success for their companies no matter what type of industry they work in.

“The (Rochester business) climate is on fire for women,” says Lauren Dixon, chief executive officer of Victor-based ad agency Dixon Schwabl.

Dixon says that unlike some other communities, Rochester is “super-supportive of women and women-owned businesses. The mentoring and support that is going on in this community—in many other communities it is not going on to the extent that it is here.”

Christine “Chris” Whitman, the current chairman and CEO of Rochester-based package-fulfillment company Complemar, agrees.

“Rochester is very open,” she says. “There is a desire on the part of many companies to be able to find minority- and women-owned businesses to be able to provide services. I encourage both minorities and women to think about being entrepreneurs.”

Read the entire article here. 

7 Things About Funding Sources that Small Business Owners Don't Know - But Should

NEW YORK, NY (October 5, 2017) excerpt from SMALL BUSINESS TRENDS - Getting funding for your small business is essential but not always as straightforward as you might think. Here are 7 things about funding sources you might not know about but should.

You need to keep a positive ending balance. Hanna Kassis works for Segway Financial. He says a small business should not only have money in a bank account before they apply for a loan, but a specific amount at month’s end.

“Lenders want to see that you’ve got a positive ending balance,” he says. “Say you’re anticipating needing a merchant cash advance at the end of the month, go put $500 dollars in your bank account.”

Your personal credit score affects your business financing. Many small businesses like sole proprietors don’t know this when they try to get financing. However, if you’ve been through a personal event like a divorce that has dented your personal credit, your ability to get a loan can be affected.

Having a good business plan will help tip things in your favor.

Read the entire article here. 

Latinos Get Spotlight at the Minority Business Table

GREENVILLE COUNTY, NC (October 4, 2017) excerpt from THE DAILY REFLECTOR - It is more important than ever before to have a conversation about Latinos in Greenville and Pitt County, Juvencio Rocha-Peralta, executive director of the Association of Mexicans in North Carolina, told about 75 minority business owners and government officials during a Minority Enterprise Development Week luncheon at the Hilton Greenville hosted by the Greenville Financial Services Department

“Latinos have embraced communities and changed the culture of the United States,” keynote speaker Rocha-Peralta said. “We have grown extremely fast. In 2016, 27.3 million Latinos voted in elections, and 24 percent of private enterprise is Latino-owned, an amazing business statistic ... that shows a powerful movement to change the political climate.” 

Rocha-Peralta also said that most Latino business startups are self-financed, a claim apparently backed up by a 2016 report by JP Morgan & Chase on a study by the Stanford University Graduate School of Business. When Latino entrepreneurs start a business, 70 percent of their funding comes from personal savings, while six percent comes from commercial loans, according to the study.

Of the businesses surveyed in the Stanford study, more than 40 percent of non-citizen Latino business owners, all of whom are here legally, are rejected when they apply for their first business loans, according to the JP Morgan report.

Rocha-Peralta praised Greenville and Pitt County officials and residents for their recognition of the accomplishments of minority business owners, but said there still is much work to do.

To read the entire article, click here.

Women's Entrepreneurial Activity Up 10 Percent, Closing the Gender Gap by 5 Percent Since 2014

BABSON PARK, MA (October 3, 2017) excerpt from CISION - Over the past year, 163 million women were starting businesses across 74 economies worldwide—this according to the Global Entrepreneurship Monitor (GEM) 2016/17 Women's Report released today.

"This not only shows the magnitude of impact women entrepreneurs have across the globe, but highlights the contribution they make toward the growth and well-being of their societies," said Babson College Professor and report co-author Donna Kelley. "Women entrepreneurs provide incomes for their families, employment for those in their communities, and products and services that bring new value to the world around them."

Among the 63 economies surveyed in both this and the last report, GEM found that Total Entrepreneurial Activity (TEA) among women increased by 10 percent, and the gender gap (ratio of women to men participating in entrepreneurship) narrowed by 5 percent.

These same economies show an 8 percent increase in women's ownership of established businesses, and a near 10 percent increase in women's opportunity perceptions across Europe, North America, and Asia.

To read the entire article, click here.

Report: Baltimore Needs More Robust Financing System for Small Businesses

BALTIMORE, MD (October 2, 2017) excerpt from THE BALTIMORE SUN - Baltimore needs a more robust financing system to help small businesses grow and to attract new companies.

That’s the conclusion of a new report by the Johns Hopkins University’s 21st Century Cities Initiative, which evaluated access to venture capital funding and loans for startup companies and more established Main Street small businesses.

The report also found that growth among traditional small businesses may be lagging because of insufficient access to loans.

While lending to small businesses in Maryland has trended upward since the recession, loans to Baltimore-based companies have lagged, in part because of consolidation among community banks that traditionally have been a key source of financing for local businesses.

Local banks are more likely to provide bigger working capital loans than national banks, which often focus on credit card loans, according to the report.

To read the entire article, click here.