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Demand for Products Matters more than Credit to Small Businesses

June 28, 2011

More evidence that the only thing that matters for hiring and expansion is the demand experienced by business owners.   Small business owners are not asking for more credit.  They don’t need it, even at favorable terms.

Businesses hire when they are swamped with demand, not when profits are high, or when they can get credit.

 

 

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  1. July 2, 2011 at 2:07 pm

    Good post.

    It never ceases to amaze me how hard it is to kill this zombie belief that credit is a huge constraint on vibrant American entrepreneurialism.

    Ask small business owners and they’ll tell you that financing is the *last* thing on their list of business constraints. They’ll tell you that every single time, for years on end, even in the depths of the so-called “credit crunch.”

    http://www.asymptosis.com/no-kidding-loan-demand-not-credit-is-the-problem.html

    http://www.nytimes.com/2010/06/24/business/24private.html

    http://www.asymptosis.com/?p=775

    Sheesh.

  1. January 10, 2012 at 1:46 pm
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