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Economic Recovery Projected to Remain Slow, but Small Business Spending on the Rise
Published on Nov 23, 2010
Read 'Economic Recovery Projected to Remain Slow, but Small Business Spending on the Rise' at 'Time to Start Up,' the small business blog by BizFilings.
Despite an abundance of recent initiatives aimed at spurring small business growth, entrepreneurs can still expect to confront difficulties when forming a company, as a recent survey projects the U.S. economic recovery will remain slow through next year.
The National Association for Business Economics (NABE) reports that economic growth in 2010 is expected to reach 2.7 percent - surpassing original projections of 2.6 percent. The survey also predicts the growth rate to remain at 2.6 percent through 2011.
"Confidence in the expansion's durability is intact, but panelists remain concerned about high levels of federal debt, a continuing high level of unemployment, increased business regulation and rising commodity prices," said NABE president Richard Wobbekind.
These concerns, claims the NABE, are unlikely to contribute to a relapse into recession, but they could cause expansion to remain slow.
Despite the somewhat disheartening conclusions, business spending is expected to grow at a solid pace, with estimates of double-digit growth to continue through next year.
As small businesses employ more than half of the U.S. private sector workforce, many are seeking to encourage spending on this level as a means to promote national economic viability. Endeavors such as this Saturday's promotional "Small Business Saturday" retail campaign are hoping to foster confidence among entrepreneurs and small company owners.