5 Things To Know About Small Business This Week: May 17
PayPal announces "Cash for Registers;" small-business optimism improves; Kabbage expands financing to bricks-and-mortar businesses; restaurants tapping into big breakfast opportunity; GoDaddy launches restaurant-specific Web site designs.
NEW YORK ( TheStreet) - Mobile cash registers, a sobering view of small business, Kabbage financing and more fun website from GoDaddy lead our list of small business happenings this week. 1. Is it the death of the cash register? PayPal announces "Cash for Registers." Starting next month, eBay's ( EBAY) PayPal will start a new program called "Cash for Registers." The program will offer free credit, debit card, check and PayPal processing for the remainder of the year to "qualifying" U.S small businesses that essentially "turn in their cash registers" in favor of mobile solutions like PayPal Here, which includes an Apple ( AAPL) iPad, card reader, iPad stand, cash drawer, and printer. 2. Small-business optimism improves in April. After the disappointing drop in March, small-business confidence improved in April but at least one trade association isn't convinced of a steady improvement. According to the National Federation of Independent Business' Index of Small Business Optimism, the monthly index rose 2.6 points to 92.1, just above the recovery average of 90.7. While four of the 12 components had better numbers for April including - improved plans for hiring, inventory increases, general economic improvement and the expectation of higher real sales -- most of the group's criteria were unchanged from the month before while two components fell. "The sub-par recovery persists for the small business sector," said NFIB chief economist Bill Dunkelberg. "Economic performance is contradictory -- corporate profits are at record levels and the stock market hits new highs, yet GDP growth for the past six months has averaged about 1.5% and the unemployment rate is 7.5%. Nothing in the NFIB data suggests that the small business half of the economy is expanding other than by an amount driven by population growth and associated new business starts now in excess of terminations." 3. Kabbage expands small-business financing offering by partnering with Intuit. Small-business financing outfit Kabbage, which made its mark by focusing exclusively on funding small e-commerce merchants that sell through Amazon ( AMZN), eBay ( EBAY), Yahoo! ( YHOO) and Etsy, among others, is expanding its reach to fund both online and offline small businesses. The company announced a partnership with Intuit to use QuickBooks data to approve and extend funding, it said Tuesday. It is a significant expansion for the two-year-old Atlanta start-up which has offered about $85 million in short-term financing through more than 70,000 advances to e-commerce businesses since its launch in August 2011. In 2013, it plans to make over 100,000 advances.