Small Business Will Need To Be More Efficient, Cost Conscious After Credit Downgrade
Written by Ken Gaebler
What are the implications of the United States credit rating downgrade for small business owners? One thing is for sure -- it shouldn't be business as usual.
The news for small business may not be good after the United States had its credit rating downgraded by the S&P from AAA to AA+, and Rohit Arora, CEO of Biz2Credit, said small business owners may need to be more efficient and become more cost conscious to operate in an economic environment which may see little growth
"The S&P credit downgrade should be a wakeup call for U.S. policymakers and business owners," Arora said, adding that important changes need to be made after the downgrade. "It may indeed act as the best stimulant for the economy overall."
Arora said two things small business owners need to know after the downgrade is that the government's leverage to pump up the economy has gone down even further, which means cuts in federal spending, and that interest rates will most likely go up in the near future as the cost of borrowing money in the U.S. will rise.
Philadelphia Weekly spoke with Scott Degirolamo, who owns Computer Guy, a small technology consulting business in Philadelphia. He said there's a lack of confidence, direction and understanding of what small business owners go through, and the same course cannot continue. He said the good news is that when things like this happen, "real leaders step up."
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