March 13, 2013
TD Securites Millan Mulraine has created a chart clearly illustrating the relationship between small business hiring in relation to total employment.
His assessment is small business limited access to capital has limited the recovery.
“Indeed, while overall credit conditions have been on the mend, access to credit has generally been identified as a sour point for small business owners,” he writes. “Consequently, the proportion of businesses indicating a willingness to increase capital spending has held steady at around 20%, which is well below the 30% average prior to the recession, suggesting that credit access has remained a binding constraint for both hiring and capital spending decisions.”