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Amid Significant Improvements in Confidence, Economy Looks to Improve in 2011
Published on Dec 29, 2010
Read our article, 'Amid Significant Improvements in Confidence, Economy Looks to Improve in 2011' at 'Time to Start Up,' the small business blog by BizFilings.
Although the recession ended in mid-2009, its effects have lingered throughout the economy and will likely continue to do for some time. However, 2011 is poised to be a year of substantial economic recovery, as a number of key studies and surveys show improvement among various market indicators.
Small business confidence has recently reached levels not seen since before the recession, with recent indexes from the National Federation of Independent Business and Wells Fargo/Gallups showing significant improvements.
The recently passed Small Business Jobs and Credit Act aims to provide new credit opportunities to small businesses through greater lending incentives to community banks, hopefully freeing up what the Federal Reserve estimates to be $1.9 trillion in liquid assets currently being sat on by private businesses.
Yet, unemployment remains the must stubborn problem. U.S. Federal Reserve chairman Ben Bernanke recently told the CBS news program 60 Minutes, "It may take four or five years before we are back to a more normal unemployment rate."
Still, consumer activity is improving, as indicated most aptly by this year's record-breaking holiday season. ComScore has reported that total spending this season is up 12 percent from a year ago, while Cyber Monday reached a record $1 billion in online sales.
For entrepreneurs forming a company or small businesses seeking incorporation, 2011 may turn out to be a better year than 2010. Still, the national economy has a ways to go before reaching pre-recession levels.