Tuesday, June 17, 2008
The recession has hit
I believe we can finally admit that we are in an economic recession. This morning on NPR I heard that the US job market has shrunk for the fifth month in a row, bringing the unemployment rate from 5 to 5.5 percent in the month of May.
What does this mean for microentrepreneurs and small business?
It means we need you more than ever!
Microenterprise and small business represent a huge portion of our domestic economy. Recent small business statistics published online by New Ground Publications (http://newgroundpublications.com) tell us that small business makes up 39% of the GNP, is responsible for 52% of sales and employs over 54 million people in the US!
Microenterprises have been able to create jobs during economically rough times. According to AEO microenterprise statistics (http://www.microenterpriseworks.org) microentrepreneurs in California generated more than 377, 000 new jobs and almost 80% of the job growth in the state during the last recession.
Women’s Initiative graduates are providing jobs for themselves and others. Nearly half (48%) of the graduates who start a business employ another person in addition to themselves. The question isn’t really how microentrepreneurs will make it through the recession but how microentrepreneurs will help us all get through!