According to a new research by Keybridge, the usage of credit cards by small-Business is creating many jobs directly or indirectly. This is giving businesses good financial benefits against cash shortages.
As per the study by Keybridge Research, there are many effects of credit cards on small businesses growth and US job creation. It also showed that for every 1 percent rise in business credit card credit availability to small businesses, there is an increase of 0.051 percent in firm employment and there is also increase in firm revenue by 0.14 percent.
According to the study findings, it was found that the increase of credit card lending to small businesses from 2003 to 2008 has tremendously contributed for the creation of 1.6 million US jobs. There was direct contribution for creation of 592,000 small-Business jobs. There were also 1.0 million jobs which were created additionally throughout the US economy.
It was also figured out that the cumulative increase in the US economy of around $142 billion on an annual basis is equal to about 1 quarter percentage point of total US Gross Domestic Product which resulted in increase of credit card lending to small businesses from 2003 to 2008.
Finally, the Keybridged study identified that there was a positive relationship between increase in issue of credit and small-Business employment and revenue.