Daily Archives: January 15, 2010

Only 10 Percent of Small Businesses Added Jobs in December

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Today, Phil Izzo at Real Time Economics did an article yesterday on the fact that entrepreneurs really had bad year in 2009 – a bad sign because it is small businesses that create more jobs.

However, this news can be good news for people who survived, by measn other than borrowing money. Those business entrepreneurs who employed tactics like accounts receivable factoring, more than likely, are doing fine.

Izzo also talked about a new report on entrepreneurialism around the world, featuing a chart that indicates the year-to-year change of entrepreneurs starting business int he US is down – 24% whereas in Spain it is – 12%, and in the UK only down – 6%.

Although there is increasing business optimism, the National Federation of Independent Business published disappointing said only 10 percent of small businesses added jobs, while 22 percent of surveyed owners cut employment in December.

“Small business owners are plagued by weak consumer demand and occasionally constrained by tight credit conditions…” said Izzo.

Invoice factoring is a viable option for business financing, and can help to fuel an expansion, buy new equipment, raise immediate working capital or ease cash flow problems. factoring can often offer a practical and instant solution.

All you need is to sell products or services to businesses, and if your customers have good credit, and if you have orders that you are ready to ship, factoring might be of great benefit to you and your company.

Retail Discounting Report

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Retailers are managing inventory levels and even though economy is improving, jobs and housing are two key indicators affecting the consumer. Experts don’t think retailers can expect large increases in consumer spending until there is improvement in jobs and housing.

With a slight growth in spending during the holiday season of 2009, retailers saw a 2.9 percent increase in sales in December. (Source: Thomson Reuters.)

0.7% Increase in sales at department stores
4.7% Increase at apparel stores
5.3 % Discount stores increase

In 2009, luxury retailers had up to 30 percent declines in sales and profitability. These poor sales figures mean larger discounts for consumers this year.

Some experts say they expect to see declines in sales this year similar to those in 2009, which were as great as 20 percent.

As a result of the financial crisis in 2008, retailers have learned to manage their inventory more efficiently in order to cut back on costs. Offering less merchandise on the floor prevents retailers from having massive discounts.

Many suppliers have realized that invoice factoring can assist them when they get department store orders for their apparel items, because they can use the tactic to make the items, pay employees, and stay in business because they can then keep selling and getting orders from other retailers.