Small and medium businesses are the economic engine of the economy
Companies with less than 20 employees accounted for 42% of new jobs created in 2013. And when you count businesses up to 499 employees, that number goes even higher (64% of total job growth, April 2013).
Starting back as far as 2009, it was a mathematical inevitability that the economic recovery would be lead by SMBs. Paul Kedrosky used the metaphor of a drunkard’s walk to describe how SMBs would fuel the job economy. An inebriated bar-goer, leaving a bar and walking randomly away from a bar is bound to reach the gutter away from the wall — so, too, young companies are the “single-cell” paramecia of the economic world.
“They can’t lose jobs because they haven’t created any yet. All they can do initially, other than fail, is stagger away from the zero employment wall”
The SMB random walk and the risk in working with smaller businesses
But getting up to speed is a struggle for SMBs. In their early years, they frequently have erratic revenues, which puts a stress on their entire supplier ecosystem. They lack easy access to funding sources and because they run short on cash, they present a risk to companies who want to work with them.
And that risk — the risk of doing business with an SMB — is hard to quantify. While larger businesses have credit agencies to monitor customer financial health, small companies fly under the radar screen, making it hard to really know how risky doing businesses with them really is.
That’s where Behalf — and this blog — come in.
Provide cash, content, and advice to SMBs and suppliers who work with them
Behalf works with SMBs — and suppliers that sell to them. Behalf provides short-term working capital to U.S. businesses. Thousands of small businesses use Behalf to finance important purchases. Suppliers also turn to Behalf as a turn-key trade credit provider, enabling them to extend favorable credit terms to their SMB customers in just a few steps.
This blog will be a natural extension of our role in helping foster the SMB financial ecosystem. We plan on offering impactful, useful content to help SMBs run their businesses more effectively, while also offering advice to suppliers to assist them in selling into SMBs.
We plan on publishing on the blog weekly, so check back in to see what we’re up to and how we can help you. We’ll also publish periodically longer-form advice — in the form of ebooks, presentations, interviews, etc. — for SMBs and their suppliers.
We’re here for you — let us know in the comments section below what kind of content/advice would help you in the pursuit of your dreams.