Inglewood Business Magazine May 2019

Small Business | Inglewood Business Magazine
Now Is a
Great Time
to Start a
Business!
There are a lot of reasons
why now is a good time
to take the leap and start
a small business. 2019 are
both shaping up to be advantageous
economically, thanks to 2018’s tax
reform that benefits small businesses.
Overall the health of the economy is
positive. A study conducted by Intuit
projected that “the number of U.S.
small businesses will grow from 30
million in 2016 to over 42 million in
2026.” One of those could be yours.
Interest rates and consumer confidence
Although current interest rates have
increased modestly in the past year—
1/4 of a point— they are still low at 1.75
percent. The fact that interest rates are
starting to slowly increase is actually
another indicator of the improved state
of our economy. As interest rates rise,
the lending market will become more
competitive, something that small
businesses can benefit from in terms
of access to capital. Increased funding
options give entrepreneurs more
choices for financing and a greater
chance of having a lender approve their
loan request. Now truly is a Goldilocks
moment for financing that should be
seized before the rates go up again.
In addition to low interest rates,
unemployment is also at its lowest
level in the country since 2000. A
lower employment rate means more
people with money to spend and
become customers, and overall it leads
to higher consumer confidence. The
consumer confidence index climbed to
a level we haven’t seen since 2000, and
is close to an all-time high.
A strong economy and happy business
owners
The last recession officially ended in
June 2009, but the true recovery took
longer, with the real GDP not achieving
its pre-recession levels until 2011 and
unemployment taking until May 2016
to go back to its pre-recession numbers.
But for 2018, economists have been
predicting positive growth, up to 3
percent. This would bring the U.S.
economy to a post-recession increase of
potentially 43 percent.
At the start of 2018, the International
Monetary Fund projected economic
growth of 2.7 percent in the U.S., while
economists with Wells Fargo indicated
an anticipated growth of 3 percent.
These are not the only economic
numbers that are climbing. CNN
Business reported that the Conference
Board’s end of 2017 survey found
consumer confidence at record highs,
with the expectation it would remain
strong into 2018, thanks to the strength
of the stock market, job growth and the
tax reforms.
continued on page 10...
www.inglewoodbusinessmag.com
Inglewood Business Magazine May - June 2019
9