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Survey: Credit concerns affect small biz’ ability to hire

When credit is available, small businesses are likely to hire, according to a recent survey conducted by CareerBuilder.

The survey showed that 73% of companies that were able to access credit in 2009 were able to hire new employees. On the downside, 15% of small businesses said that their inability to access credit this year will prevent them from adding headcount, and 34% of them do not think or are unsure if they will be able to get the credit they need this year.

 “While small businesses were hit hard during this recession, they will play a vital role as the economy bounces back,” said Brent Rasmussen, President of CareerBuilder North America. “After past recessions, small businesses re-energized the economy by driving innovation and putting people back to work. The majority of small businesses we talked to say they are confident they will not lose their businesses in 2010, and many are hopeful that they will be able to add staff to support their bottom lines and remain competitive.”

While small businesses are cautiously optimistic as they begin the new year, they are still preparing to face some hurdles. When asked what their organization’s top challenges would be for 2010, small businesses reported the following:

•  Cost of health insurance, 42%

•  Marketing expenses and building awareness, 26%

•  Attracting and hiring top talent, 22%

•  Government regulations, 21%

•  Gaining access to credit, 11%

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