Thursday, July 15, 2010

4 Reasons Tighter Credit Is Good for Small Business | Business Pundit

4 Reasons Tighter Credit Is Good for Small Business | Business Pundit

Mr. Sildon gets Ditched for several reasons. First, he infers that small businesses needed to be taught a lesson about the importance of working in cash. Was it the small businesses that created the credit crunch through reckless spending? Second, he very idealistically mentions how learning to work "lean and mean" is a residual benefit of the crunch. What about the small businesses who are trying to serve other small businesses? These vendor small businesses who were able to grow and develop new products and services under a previous margin are now going to be stifled by their "lean and mean" clients. Lower margins means less money to be invested in creative projects and R&D. Perhaps Mr. Sildon's time would be better spent discussing the lessons learned by lending institutions and government instead of desperately grasping for ways in which the small business victims should be thanking their aggressors.

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