Even with the economy showing signs of improvement, numerous factors have been negatively impacting small businesses.
To properly prepare for times of uncertainty, owners of these companies should consider their small business insurance needs, as lawsuits can be even more costly when cash flow is tight.
One of the major factors that is hurting small businesses is the recent sequestration, according to the Hill. Budget cuts have sent government contractors into retraction, leading to uncertainty among large businesses. As a result, small businesses are being affected, as bigger companies are often major customers of these businesses.
Additionally, lending is still tight for small businesses, as banks are still reluctant to hand out money.
Many small businesses have even said that the improving economy hasn’t been reaching them, as nearly one-third said the economy is still their biggest concern, according to a CNNMoney-Manta Survey.
The U.S. employment situation has been bettering itself as well, but the survey found that only 14 percent of small business owners said they were hiring more than last year, and two-thirds aren’t hiring at all.
Should small businesses continue to be left out of the economic recovery, they should ensure they have the proper insurance coverage to prevent a situation that could lead their doors to shut for good.