The recently released ADP National Employment Report revealed private employers added more jobs than expected in February, boosting expectations for the economy and potentially increasing the confidence of business owners and investors. This news comes despite concerns about tax hikes, gridlock in Washington and high national debt levels. Economists surveyed by Bloomberg estimated the economy would add 170,000, but the latest numbers show an increase of 198,000 positions last month.
Data from the report indicates gains were spread across companies of all sizes. Small businesses with fewer than 50 employees added 77,000 jobs, medium-sized companies with 499 or fewer workers added 65,000 positions and large corporations increased their payrolls by 57,000. Gains were seen across all markets, including the construction, manufacturing, trade, transportation, financial and professional industries. This indicates businesses are eager to grow and expand their operations and are confident in the current market conditions.
"The job market remains sturdy in the face in significant fiscal headwinds," said Mark Zandi, chief economist of Moody's Analytics. "Businesses are adding to payrolls more strongly at the start of 2013 with gains across all industries and business sizes. Tax increases and government spending cuts don't appear to be affecting the job market."
Businesses could seek funding to continue growth
As business owners continue to see economic improvement and add more employees to expand operations, they may noticed an increased need for business financing and the amount of lending necessary to keep growing. Without the ability to obtain investment loans, a firm may be forced to hold off on opening a new location, developing a new product or hiring new individuals who could contribute to the expansion of an enterprise. Thankfully for most entrepreneurs, it's getting easier to obtain this funding, especially from small and mid-sized banking operations.
While a firm may choose to work with a smaller bank due to its willingness to provide startup funding or growth loans, there are other benefits to employing an institution of this size. Local banks can often customize service to best fit an entrepreneur's needs and ensure his or her cash management options are working well. With more tailored solutions and more friendly, personal service, small-business owners may find working with smaller financial operations offers them many benefits and can help them improve company operations.
Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.