NEW YORK (TheStreet) -- What's happening in small business today?
1. What could small businesses do with the $2 billion lost by JPMorgan Chase? Jamie Dimon, JPMorgan Chase's top dog had to suffer the embarrassment of admitting the firm lost $2 billion on a bad trade, but what if he took a gamble on some small businesses instead of risky and exotic derivatives? While $2 billion may be a lot of money to imagine, Forbes contributor Judy Owen decided to ask some of her small-business owner friends what they could do with an extra $200,000.
She noted that a lawyer would purchase office space instead of having to rent and hire staff. A gallery owner would improve his web presence and database management and hire staff. A marketing company would develop an app, which would likely turn into hiring. The list goes on.
"So, 5 small companies, less than 10 employees each today with $200,000 each would net 12 jobs created, a number of contracts for other services or sales of other equipment. That's $1 million," Owen writes.Owen who also owns Opportunity Works, a staffing firm that works with people with disabilities, added that if she had as much as $1 million injected into her company that would mean more hiring and the possibility of expanding his business by franchising. That said, while it may be pennies compared to the $2 billion in losses, Chase did partner with LivingSocial last month to extend a $3 million grant program to small businesses under its Mission: Small Business initiative. 2. Small business lending eases in April. According to the Thomson Reuters/PayNet Small Business Lending Index, April was the fourth month in a row that lending to the nation's smallest businesses slowed. Companies were "hesitant to bulk up their operations, boding poorly for stronger economic growth," Reuters says. The Index measures the total volume of financing to U.S. small businesses. For April, it fell to 94.1 from 96.0 in March. Borrowing rose 7% compared with a year earlier. It was the lowest growth rate since July 2010. Accounts in delinquency continue to dip lower. 3. Manta's tip of the day: ask for customer recommendations. Manta suggests companies should ask their customers to recommend them. This could definitely translate into more business -- as long as the recommendations are positive -- since these days, many people go online to read recommendations before using a service or product. Manta, an online directory of small businesses, which also offers tips on how to grow your business, says a business should publish them wherever they can -- on its website and social media profiles. Manta wants to know: how do you capture recommendations? Weigh in on the conversation. -- Written by Laurie Kulikowski in New York. To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com. To follow Laurie Kulikowski on Twitter, go to: http://twitter.com/#!/LKulikowski >To submit a news tip, email: email@example.com.
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