Financing a Business Magazine Article

Financing a Business Magazine Article Coursework example
High school
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Finance & Accounting
Pages 7 (1757 words)
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Financing a Business Magazine Article Strong cash flow is the core of any flourishing small business. The recent deviation in the financial environment has affected the banks as well as the small businesses. On one hand the weakening society has put additional pressure on the small businesses and on the other hand banks are not confident enough to finance any new venture or small business…

Introduction

In the year 2011, the number of small businesses in the UK was found to be around 4.5 million, which indicated that around 99 percent of the businesses were small firms (Nanto, 2010). The financial crisis has made it difficult for many small firms to get funding assistance from the banks. According to the Huffington Post, around 170,000 small businesses had to close down in the USA, in the year 2008-10; out of which around 6.79 million small firms closed in 2010, and around 6.96 firms closed in 2008 (Kavoussi, 2012). The rate of self-employment diminished by 4 percent in 2007 and further by 12 percent in 2009 (Halm-Addo, 2010). A series of survey was done, which revealed that the reducing employment, sales, investment rate during 2009 and even during 2008, were affecting the small business and their performances. About 165 small firms were surveyed in the UK and it was found that around 1 in every 20 firms had doubts of their survival, and around 8 percent were forecasting deep trouble for themselves. The small businesses do not have high cash reserves or large proportion of capital assets which would be acting as collateral. ...
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