California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

The next few years will mark a new phase for the U.S. economy, characterized by
accelerated job growth and increased opportunities for small and medium sized
enterprises, particularly in international trade, according to a new report
released by TD Economics, an affiliate of TD Bank.

The sluggish economic recovery is partly attributed to the fact that small and
medium sized enterprises have been hit on two critical fronts according to the
report. One, they were highly concentrated in the hardest hit industries of the
recession. And, two, tight credit conditions have been made worse with collateral
tied to real estate.

Of the two influences, the mix of industry concentration now seems to be the bigger,
lingering issue holding back small and medium sized enterprises, the report says.
Fortunately, the recovery is broadening out beyond the manufacturing sector and
domestic demand is gaining strength. Opportunities for new firms to start up and take
advantage of the economic recovery should continue to rise.

The report also predicts that along with the increased opportunities that are
materializing from current, domestic economic improvement, there is enormous potential
for small and medium sized businesses to tap into foreign markets.

Given the increasingly diverse growth in world demand and the global competitiveness
of the current American dollar, businesses adept enough to navigate products and
services in an export market face a number of unique advantages over those focusing
solely on the domestic market. This opportunity according to the report will allow
SMEs in the service trade industry – a key driver of exports – to expand sales and
provide services such as accounting, advertising, consulting and legal advice.

I am Tim Johnson and this has been the California Business Minute.