Factors That Affect The Health Of Small Business And Entrepreneurship

982 WordsJun 11, 20154 Pages
Growth in the small and medium business in Canada and other developed countries has been very significant. This division of the business community now represents about 40 percent of GDP and accounts more than half of total employment. Today small businesses are more diverse and stronger than ever, but they also face newer and more challenges or inhibitors to their growth than their older counter parts. This research will attempt to find the answer to the following hypothetical question: What are the barriers to entry, inhibitors to growth, and detriments to the health of small business and entrepreneurship today? Access to capital and credit at various stages in the business life cycle is identified as the major hurdle by the entrepreneurs. For many small firms and most start-ups, the personal funds of the business owners and entrepreneur and those of relatives and acquaintances establish as the major source of capital. For many small businesses, especially during the early years of their operation, credit is simply not available. For many others, the limited available credit is not through bank loans. Due to this many of them rely on multiple credit card balances and home equity loans as major sources of credit for start-up firm. Because banks are bound by laws and regulations to prudent lending standards that require them a risk management assessment for each loan made. These regulations were made more vigor during the late 1980 ' ' and early 1990’s. Banks always found
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