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Small Businesses Hurt by Unemployment and Stunt in Job Growth
Published on Jul 14, 2011
Read 'Small Businesses Hurt by Unemployment and Stunt in Job Growth' at 'Time to Start Up,' the small business blog by BizFilings.
Down 22,000 from the previous week’s 405,000 figure, unemployment claims decreased slightly this week, meaning either less people are looking for jobs or more people are getting them. Many small business owners hope it is the latter.
However, the economy is still struggling, June figures show unemployment rose to 9.2 percent, and only 18,000 jobs were created, showing stagnated growth, according to the American Small Business League.
These poor figures show that small businesses still aren’t getting the funding they deserve. According to the U.S. Census Bureau, small businesses create 90 percent of all net new jobs, but the federal government only attempts to award 23 percent of all contract dollars to small businesses.
Of that 23 percent, small businesses will only see about 5 percent. due to large businesses, General Electric, foreign companies and Rolls-Royce all being awarded chunks of those contract dollars intended for small businesses.
President Barack Obama is aware of this problem, and intends to put an end to it. Large corporations taking funds from small businesses puts a serious wrench in the side of many small businesses aiming to grow.