While politicians bicker over what comes next for the $700 billion bailout plan, and economists warn of a dire future, small businesses are already feeling the pinch. The credit crunch and broader economic downturn are forcing Chicago-area entrepreneurs to rethink their business models. They’re trimming costs and looking for funding outside of traditional financial institutions.Another item of interest to read from LewRockwell.com.
Entrepreneurs never have it easy. A new business owner takes on big risks and very long work days. The current economic troubles make the decision to start a new business even harder.
Erica King is the finance consultant at the Women’s Business Development Center in Chicago. It’s her job to help current small business owners and wanna-be business owners with the financing process. And right now she doesn’t have a ton of good news.
KING: For those that are looking to start businesses, we are letting them know that obtaining financing right now is challenging.
She says it’s not impossible for the right person with the right idea and great credit to get a loan. But it’s hard. She says at least one local bank isn’t making any new small business loans right now. Banks aren’t in the mood to take a lot of the risks associated with first time business owners.
Dispatches from Chicago's south side.
Thursday, October 2, 2008
Small Businesses Work Around Credit Crunch
For those in the 6th Ward that own small businesses a story from CPR:
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