Small businesses play an important role in the economy noted by Bahaa Abdul Hussein. They help create entrepreneurs who not only earn money for themselves, but also generate employment. Small business have limited resources and money, and require support. Banks are doing their best to help and support small businesses. We look at how banks support small businesses.

Banks and their support for small businesses 

Small businesses play a very important role in the economy. They offer employment and contribute to the growth of the economy. Promoting small businesses allows for entrepreneurs to develop, which is vital for the economy. There are nearly 33 million small businesses in the USA. A more striking statistics is that almost half of all working people are employed by small businesses.

Promoting small businesses helps the economy, which is why banks are doing their bit to help small businesses. There are problems though! The major problem is that small businesses are considered more risky by banks. Data shows that nearly 20% of small businesses close within one year of starting. This is why banks find it difficult to lend to small businesses.

Despite these challenges, banks are doing their bit for small businesses.

  1. Banks are doing a good job in providing small business with access to capital. They offer different options like loans, line of credit, and business credit cards.
  2. Banks have experts who can advise and help small businesses streamline their operations. They can advise firms on managing their cash flow better and on financial planning.
  3. Some banks offer business support services that focus on helping small businesses become financially efficient.
  4. Banks use technology to help protect small businesses from fraud.
  5. They help small businesses build their credit, by creating a positive credit history.
  6. Banks offer customized services for small businesses. For example, earning interest on any surplus funds they have.
  7. Merchant services offered by banks helps small businesses easily accept credit card payments from their customers.
  8. Online and mobile banking services make it convenient for small businesses to access banking service. They are especially useful for small businesses located in geographically remote locations.
  9. Banks also offer insurance to small businesses. Liability insurance is one area where banks can protect small businesses from risks.
  10. Banks also promote financial literacy helping small business owners manage their finances better.
  11. Online banks offer lower fees and loans at lower interest rates that benefit small businesses.
  12. Banks are ready to develop a long-term partnership with small businesses, so both are benefited.

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