Introduction

“When the job market is tight, many Americans venture out and launch their own enterprise. Times may be tough, but the American entrepreneurial spirit is tougher.” - Nydia M. Velazquez

Small businesses are starting up every day across the nation, new business founders are spewing with talented ideas, creating job opportunities as well as goods and services in hope to drive our economy back into good standing. Currently speaking, successful small businesses are a key strategy to increase our economy’s recovery stage. Small businesses lead our economy in many ways; not only are they fulfilling the needs, wants and desires of consumers, they are creating jobs as well as supporting banks and lending companies stay in business by borrowing money. All successful, big corporations were once small businesses and with high demand from consumers of its goods and services, the business is able to expand, create more revenue and hopefully become a successful, profitable company. The growth for small businesses in our economy is vital, especially during tough times of high unemployment rates. The SBA states, small business firms with fewer than 500 employees drives the U.S. economy by providing jobs for over half of the nation's private workforce as well as making up more than 99.7% of all employers. Also, small businesses are responsible for 75% of all new jobs within the economy. With those numbers, we see the importance in the growth of small businesses and why adequate funding should be tolerated within banks and lending companies at a reasonable interest rate in order for businesses to start up. Throughout this paper, I am going to further discuss the importance of small businesses for economic growth for this nation; the correlation between the growth of businesses and unemployment rates as well as the relationship between lending sources, banks and