Why small businesses in the U.S. don't want loans

The latest news and information for entrepreneurs from across the web universe, brought to you by the Report on Small Business team. Follow us on Twitter @GlobeSmallBiz

It's not a credit thing, it's a lack-of-demand thing

Small-business lending in the U.S. has yet to return to pre-recession levels, but there's a logical explanation for this - one that counters the idea that banks are denying credit to entrepreneurs and choking them off from money as a result.

In this post from the Wall Street Journal, the writer offers an alternative view: because small business sales are so weak, they can't justify taking on debt to expand operations and therefore don't want loans. In other words, it's not a credit thing, it's a lack-of-demand thing.

"Although a tightened credit supply constrained some small firms, weak consumer demand for the firms' products and services was a more pressing factor" for small businesses during the recession, according to research conducted by the Federal Reserve Bank of New York.

While banks certainly clamped down on credit during the recession - limiting the number of small businesses that could qualify for loans - the problem still seems to be a lack of customers. No one knows better than small business owners that during rough economic times, consumers are more likely to hold onto their pocketbooks for dear life.

Hey Mickey, you're so fine

Walt Disney didn't become one of the most successful entrepreneurs by accident. One of Disneyland's employees, Bruce Kimbrell, explains how 'cast members' make the place so magical in this post from AMEX's Open Forum.

Dressing down in the summer

Nearly three quarters of employees think it's acceptable for both men and women to dress 'more casually' during the summer, according to a survey conducted by Adecco Staffing. But what does 'more casually' mean? It depends on who you're asking ( Inc.com writes 'perhaps not surprisingly, men are in favor of women wearing less.'). Seventy-six per cent of women said strapless tops or dresses were too casual for the workplace, compared to just 55 per cent of men, and four out of five women deemed miniskirts an office no-no, compared to three out of five men.

EVENTS AND KEY DATES

The beer is almost here

Toronto's annual festival of beer is taking place this weekend. Attendees will get the chance to sip and sample more than 120 brands from all of the world. While a number of big-name brands will be in attendance (Budweiser, Guinness, Miller, Molson, to name a few) a healthy number of smaller vendors will get the opportunity to show off their food and drink.

EDITOR'S PICKS FROM REPORT ON SMALL BUSINESS

Gone in 60 minutes: Pop-up taco stand lures lunch crowd

La Carnita, a concept developed by the team at OneMethod Digital and Design, offers an artful twist on the pop-up food truck

FROM THE ROSB ARCHIVES

Lawyer brews craft beer to the extreme

On the topic of suds, check out this profile on Spearhead, an exhiting new craft brewer making a splash in Ontario.

Got a tip on news, events or other timely information related to the small-business community? E-mail us at yourbusiness@globeandmail.com

Join The Globe's Small Business LinkedIn group to network with other entrepreneurs and to discuss topical issues: http://linkd.in/jWWdzT