Small Businesses Get Fewer Loans, Create Fewer Jobs ( . . . ???)

That’s what a paper from a Harvard Business School person says. It was posted to Forbes.com, including several graphics (this is one of them):

Some of the thinking behind all of this:

Washington has been engaged in a debate over macro-economic issues like deficit reduction and the size of government. These are important issues, and we’ve made progress. But, if we’re going to raise the trajectory of job creation, we must focus on micro-economic strategies that give small businesses and entrepreneurs the resources they need to grow and create more well-paying jobs. One of the most critical of these is capital.

As the pace of the recovery continues to be slow, we need to ask whether the current credit environment is having a dampening effect on small business job creation, and thus, the jobs gap overall. Although there is no way to accurately measure the gap in this market, the evidence strongly suggests an imperfect market and acute impediments to creditworthy borrowers that must be addressed if we are going to accelerate job creation.

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EleBlog comments:

1. Forget Washington. He’s dead. The absolute proof that there is no Afterlife is that — were Washington a shade in Hades, he’d have already come back and told us what to do (that’s how badly off we are, and that’s what a great man he was).

2. The people who do the nation’s business in the city named after George may be alive, but — collectively — they’re dead from the neck up. Expect no help from Washington. Solve the problems without thinking about Washington.

3. This paper may or may not have its arms around something. As someone who has worked with and for electrical contractors for most of the past 35 years, when someone says “small business” I think about the contractors in the electrical field (and all other fields). There are one heck of a lot of small businesses in the EC industry — you could make the case that there are only a handful of companies that are NOT small businesses.

These companies can’t create jobs unless there is work for them to do. I would but a retail donut franchisee won’t be motivated to open up another shop across town unless he’s selling a lot of donuts out of the three stores he already operates (and he’s probably not selling more donuts in 2014 than he did in 2006).

So maybe this Harvard-supplied paper is brilliant — or a bunch of dung.

Source: http://electricalcontractor.com/?p=15231

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