I reported previously on the DiscoverCard Small Business Watch, i.e. monitoring small businesses with cash flow issues. As seen in the graph below (courtesy of Clusterstock – Chart of the Day), the situation has improved somewhat, although 49% of owners have still experienced cash flow issues in the past 90 days.

Without a turnaround in this situation, small businesses will not create jobs. And this is key to the overall economic recovery as small businesses are responsible for more than 60% of employment. When asked if they are likely to hire new employees if offered a $5,000 tax credit, such as the one proposed by the Obama administration, 69% said that it was “not very likely” or “not at all likely,” 15% said they would be “very likely” to hire, 10% said they would be “somewhat likely,” and 6% weren’t sure.


Source: Clusterstock – Chart of the Day, March 9, 2010.

Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.