by: Grow VC Group
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Small and medium-sized enterprises (SMEs), firms with fewer than 500 employees, are the backbone of U.S. economy. They make up 99 percent of all firms, employ over 50 percent of private sector employees, and generate 65 percent of net new private sector jobs. SMEs account for over half of U.S. non-farm GDP, and represent 98 percent of all U.S. exporters and 34 percent of U.S. export revenue.

To grow and globalize, SMEs need access to credit and cash flow. Credit conditions for U.S. SMEs deteriorated in the wake of the financial crisis, and are expected to continue depressed as Basel III capital adequacy requirements come into effect in 2015. Early-stage companies seeking equity finance have also faced challenges, as venture capital is increasingly focused on later-stage companies and available only to a handful of firms. Small business exporters have been doubly challenged, as entering and operating in international markets implies costs that far exceed those of firms targeting and shipping within their domestic markets alone.

As the U.S. economy recovers, 2014 is becoming a big year for alternative lenders and investors on the online and crowdfunding spaces, and see their expansion also to mobile platforms.

Read the whole article on TradeUp Blog.

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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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This entry was posted on Monday, April 21st, 2014 at 6:48 am and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.