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Small Businesses: Difference between revisions
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* '''This reduced consumer interest in the products of small fi rms likely lowered the firms’ demand for credit. In these scenarios, firms do not have the ability to invest and thus have little need to borrow.''' | * '''This reduced consumer interest in the products of small fi rms likely lowered the firms’ demand for credit. In these scenarios, firms do not have the ability to invest and thus have little need to borrow.''' | ||
* Total debt of small firms started to decline in fourth-quarter 2008 and has not begun to recover as of second-quarter 2010. Meanwhile, total debt of large firms (with more than $50 million in total assets) continued to increase throughout the recession. | * Total debt of small firms started to decline in fourth-quarter 2008 and has not begun to recover as of second-quarter 2010. Meanwhile, total debt of large firms (with more than $50 million in total assets) continued to increase throughout the recession. | ||
* The behavior of sales has been similar for small and large fi rms until recently. Sales started to recover among large manufacturing fi rms in second-quarter 2009, while sales of small firms have lagged and their recovery has been sluggish. | * The behavior of sales has been similar for small and large fi rms until recently. '''Sales started to recover among large manufacturing fi rms in second-quarter 2009, while sales of small firms have lagged''' and their recovery has been sluggish. | ||
* Growth in inventories for small and large firms has fallen since fourth-quarter 2008, but it has declined more sharply for small firms. Fixed investment dropped significantly among small firms, and there has been no sign of recovery. In contrast, fixed investment by large fims has shown a sharp increase. | * '''Growth in inventories for small and large firms has fallen since fourth-quarter 2008, but it has declined more sharply for small firms. Fixed investment dropped significantly among small firms''', and there has been no sign of recovery. In contrast, fixed investment by large fims has shown a sharp increase. | ||
===== Average Business Size and Sectoral Employment Declines ===== | ===== Average Business Size and Sectoral Employment Declines ===== | ||