NEW YORK—Small businesses are increasingly relying on their credit cards to fund expenses in the current economic climate, a new report based on Intuit data reveals.
“Post-pandemic credit card spending by these entities has shot up by an average of 20%. However, this rise in spending is accompanied by a significant 26% increase in monthly credit card payments, inclusive of interest charges,” Small Business Trends said in its analysis.
The study also shows:
- Impact on Employment. “While there’s been a general uptrend in employment across the U.S., Canada, and the U.K., small business employment remains vulnerable. The first five months of 2023 saw a dip in the US’s small business employment rates. Canada and the UK experienced similar downturns over the course of eight months.”
- Flourishing Solopreneurs. “While there’s a surge in non-employer businesses, indicating a vibrant entrepreneurial spirit, there’s a concerning decline in the number of these enterprises creating jobs.”
- Access to Funds. “Roughly 50% of small businesses in the observed regions rely on self-funding by owners. Especially in the U.S., new and minority-owned businesses continue to grapple with significant funding challenges,” according to the report.
Just Because It’s Autumn Doesn’t Mean Falling for Schemes to Overcharge You for CU Industry News. Instead, Try This Crisp Offer
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?