Entrepreneurial Leadership Will Be the Basis for Significant Job Creation
by / ⠀Startup Advice / August 13, 2010
Earnings season is upon us once more, with CEOs beaming over their latest earnings reports, yet cowering when the inevitable question about domestic hiring is pressed upon them. Growth, we are told, will come from international efforts and coincidentally, the majority of hiring will be done overseas as well. Those prognostications do not bode well for the nation’s unemployment figures, and since the Obama administration has not gotten around to putting curbs on outsourcing, the 8.4 million jobs that were lost during this latest recession will be a long time in returning, if ever.
Unemployment may be the witch’s brew in most parts, but for many, it is the catalyst that is making them take the leap into entrepreneurship. From little Grandmas packaging up their best cookie and toffee recipes in Nevada to couples making soap and other aromatic products in their basements in North Carolina, Americans are having to face hard facts with more creativity than have past generations.
Typically, burgeoning entrepreneurs would secure an SBA loan from a local bank by using the equity in their homes as collateral. That business model does not work in today’s recovery market. As one Small Business Development Center official states, “In the past, a lot of new start-ups took money out of their homes, but the housing market is a huge risk right now. Credit for small businesses has dried up, making it hard for those without a track record even to borrow short term.”
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