Economists at the National Bureau of Economic Research (NBER) have decided that June 2009 marked the end of the Great Recession, putting us over a year into the economic recovery in the United States.
Regardless of what the NBER economists say, few small business owners think the economy is very good right now.
But what do the numbers say? How does the small business economy compare to what it was like before the recession?
I’ve pulled together some statistics that show that:
- Self-employment and new business creation are down
- Fewer people are working at new and small businesses
- Owner pessimism is up, with fewer business owners expanding sales and more experiencing cash flow problems
- Fewer owners are making capital investments, hiring, or increasing compensation
- More businesses are going under
- Fewer businesses are having their borrowing needs met, and trade credit is down
- Angels are financing fewer companies
- Venture capitalists are investing less money in fewer deals
- VC deals are smaller and valuations are rising at fewer companies
- VC-backed companies are experiencing fewer exits and at lower valuations
The story is very clear. Recovery or not, the economic situation for small businesses is still considerably worse than before the recession began.