How Small Businesses Can Still Create Jobs Despite Inflation and Rising Interest Rates

Posted under: SMB
Date: 2024-01-02
How Small Businesses Can Still Create Jobs Despite Inflation and Rising Interest Rates

Small businesses are crucial for community well-being, according to a 2022 survey showing 73% of Americans believe in their positive impact. Despite a surge in new business applications, the creation of jobs by small businesses has declined due to challenges in accessing financing amid record inflation and high-interest rates. The Intuit QuickBooks Small Business Index Annual Report indicates rising costs as the top challenge, impacting small business growth. Reduced cash reserves and higher credit card debt hinder job creation. Entrepreneurs are adapting by utilizing resources and tools. Choosing the right banking partner is crucial for accessing capital, with well-financed banks aiding funding. Digital tools play a crucial role, with over 55% of small businesses managing multiple areas using digital technology experiencing revenue growth. High adopters report workforce growth, emphasizing the benefits of digital tools, including AI-driven efficiencies.

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