Major Developments Major Developments by Calendar Year

February 14, 2011

Recovery of Premiums by Small Businesses in the U.S.

Filed under: Small Business — Tags: — Winson @ 6:58 AM

Small businesses contribute a lot for the economy in America. There were about 4.8 billion businesses employing 25 or fewer workers in 2009. Recession brought many bad effects on small business industries. According to the Illinois Main Street Alliance report, coverage for workers was decreased in 2008 and 2009 in about 12% of 500 small businesses surveyed. Around 35 percent of the companies switched to insurance which provided only few services.

Companies having less than 25 workers had wages which are less than $50,000 a year. As they have higher premium costs they achieved benefits from the tax credit. The benefits under health overhaul law were also not expected. According to a report from consumer groups, Families, USA and Small Business Majority, health coverage was offered to only 46 percent of employers having three to nine workers. About 72% of small businesses having 10 to 24 employees offered with the health coverage for workers. More than 95 percent of companies of 50 or more workers offered coverage to their employees.

The tax credit help small businesses, which tend to lack the purchasing power of larger employers, maintain coverage by pooling risk. According to the federal government website HealthCare.gov., payment for the same insurance policy by small businesses was found to be 18% higher than that paid by larger firms. The tax credit was provided for companies on the cusp of dropping coverage for their workers.

February 7, 2011

Rise of Auto Sales 20% in U.S.

Filed under: Automobile — Tags: , — Winson @ 5:20 AM

According to the quarterly sales analysis, auto sales rose about 20% in April in the U.S. A. Still gradual recovery in the economy was reflected from recession-stunted results from the earlier year. The economic recovery in the United States would appear to be on track. But the pace was not expected to be robust.

The sales of Toyota Motor Corp rose 24 percent. This was weaker than the result that was expected. Due to massive safety recalls the sales tumbled in the earlier year. The company incentives were extended for third consecutive month to jump-start sales.

The largest percentage gain at 35 percent was reported by the Nissan Motor Co. Ltd. Following it are the Hyundai Motor Co at 30 percent, and Chrysler and Ford Motor Co at 25 percent. When compared to the previous year, General Motor Co posted 6.4 percent sales increase. The company was in the first position as the top seller in the United States. Ford and Toyota followed the General Motors. The auto industry was bracing for bankruptcies by GM and Chrysler in the previous year. However, even by excluding the discontinuing brands of the company, the sales of GM in April rose 20 percent. Chrysler was filed for bankruptcy at the end of April 2009 and presently it has been under the management control of Fiat Spa of Italy.

Honda Motor Co. Ltd is considered in the fourth position in the United States. This is based on the number of vehicles sold and it is the most closely shopped brand to Toyota. A 12.5 percent sales increase was reported by Honda. The costly incentives had hurt profit margins and used car prices.

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December 27, 2010

Half of Irish Small Businesses Plan to freeze recruitment in the next 3 months

Filed under: Small Business — Tags: , , — Winson @ 8:32 AM

The Small Firms Association (SFA) has conducted and released the findings of its Q2, 2010 Jobs Sentiment Survey on a total of 622 companies employing 13,750 people. The sample constituted mainly of manufacturing, distribution, retail and services sectors and from a regionally representative sample, which included all parts of Irish Republic.

The survey states that, during the last 3 months, 60% of companies have maintained current levels of employee numbers, but 29% of companies had experienced a decrease in employee numbers in the same period. Just under a quarter (24%) of companies expect a further decrease in the next 3 months.

The Q2, 2010 survey shows for the next 3 months, 14% of companies indicated the introduction of short-time working (a decrease of 1% on Q1, 2010) and 7% implementing lay-offs (a decrease of 4% on Q1, 2010). With an increase in 3% from Q1, now 50% of small firms will implement a recruitment freeze in the next three months. And 24% of firms will not extend any current employment contracts; this figure remains unchanged since the end of 2009.

In regard to training, 37% of survey respondents indicated that in the next 3 months they will be training and improving the skil of the staff.

Small Firms Association’s director stated that many of the small businesses are reluctant to recruit mainly because of economic and financial uncertainty.

With three out of five companies are hoping employee numbers to stay at their current level and 19% of firms expecting to increase their employee numbers, and with regard to training, 37% of survey respondents indicated that in the next 3 months they will be training and improving the skill of the staff, 2011 looks much better than the current year.

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October 13, 2010

Small Businesses Borrowing Dropped in May: Pay Net Index

Filed under: Small Business — Tags: , , — Winson @ 10:21 AM

As per the report based on PayNet, there was a drastic drop in the level of borrowings by small businesses in USA in the past 7 months. As per the Thomson Reuters/PayNet Small Business Lending Index which measures the overall volume of financing to small businesses in USA reported a drop of 5 percent from the previous month on a seasonally adjusted basis. It was the lowest reading since October. It was recorded as the fourth-lowest level. When compared with the previous year’s index, it was up by 9 percent in May.

  • There was a decrease in accounts in moderate deliquency or those which were behind by 30 days or more in May by 3.36 percent from 3.47 percent in April.
  • Accounts which were 90 days or more behind in payment or in severe delinquency also dropped to 1.11 percent in May from 1.21 percent.
  • The accounts which are behind 180 days or more or in default and also which are unlikely to ever get paid also declined to 0.91 percent of the total receivables in May from 0.94 percent during April.

Regardless, the regulatory overhauls in the US healthcare and finance industries are making it hard for the small businesses to estimate the costs of the future. This is resulting in holding back of spending by small businesses.

October 5, 2010

Increase in Credit Card Usage by Small Business Created Numerous Jobs: Keybridge

Filed under: Small Business — Tags: , , — Winson @ 7:25 AM

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.

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