Cherrry Hill, New Jersey and Portland, Maine (PRESS RELEASE – June 2, 2010) — America’s small businesses have experienced a “greater” Great Recession than other business segments, and the nation’s prospects for economic recovery depend importantly on the prospects for those small businesses, according to a new report published today by TD Economics, in partnership with TD Bank, America’s Most Convenient Bank®.
Titled, “Small and Medium Sized Businesses Key to U.S. Economic Recovery,” and authored by TD Economist James Marple, the report outlines the characteristics of the recent recession that have been particularly hard on small businesses, namely acute job losses, the tightening of the credit markets, and the industrial composition of the economic correction. It also contends that small and medium-sized businesses are at the forefront of the creative process of powering the economy out of the downturn.
Marple, who specializes in the factors impacting the U.S. economy, writes, “The Great Recession was not kind to small businesses in America. Small and medium-sized businesses suffered a disproportionate share of the job losses and many still have difficulty accessing credit from some lenders. Fortunately, things are beginning to look up.”
In the report, Marple also emphasizes the reality that “economic growth over the longer-term is driven primarily by individuals taking risks and making sacrifices in order to bring innovative ideas to market.” If this growth is set in motion, he estimates that by the end of 2011, the U.S. economy could employ over 6 million more people than it does today.
Fred Graziano, Head of Retail and Small Business Banking for TD Bank, agrees. “Clearly, small and mid-sized businesses are fundamental to the success of the economic recovery, just as having access to credit is fundamental to the success of those businesses,” he said.
“That’s why at TD Bank, we continued to lend throughout the downturn, and we’ll continue to help fuel the upturn,” said Graziano. “We salute the small business community, which has displayed such resilience and courage over the past months, and TD Bank stands ready to assist them with the tools, resources and financial support they need.”
The findings of the TD Economics report may also bring some welcome news to the small business community. Data cited in the report indicates that a broader economic recovery is already starting to take shape, which may be sooner than many small businesses anticipated. According to a January 2010 survey of small business conducted by TD Bank, a mere 21 percent of small business owners believed that relief from the recession would arrive by mid-year. Still, 87 percent of small business owners said they were optimistic that their business would perform at least the same or better in 2010 compared with 2009, and 36 percent expected to see their business grow this year.
TD Economics provides analysis of global economic performance and forecasting, and is an affiliate of TD Bank.
For the complete findings of the TD Economics report, click here: http://www.td.com/economics/us.jsp
For the results of the TD Bank Small Business Survey, click here: https://mediaroom.tdbank.com/index.php?s=43&item=213
About TD Bank, America’s Most Convenient Bank
TD Bank, America’s Most Convenient Bank, is one of the 15 largest commercial banks in the United States with $152 billion in assets, and provides customers with a full range of financial products and services at more than 1,000 convenient locations from Maine to Florida. TD Bank, N.A., is headquartered in Cherry Hill, N.J., and Portland, Maine. TD Bank is a trade name of TD Bank, N.A. For more information, visit www.tdbank.com.
TD Bank, America’s Most Convenient Bank, is a member of TD Bank Financial Group (TSX, NYSE: TD) of Toronto, Canada, a top 10 financial services company in North America and one of the few banks in the world rated Aaa by Moody’s.