The Difficulty of Essential Resources

When starting a new or growing an emerging business, what seems to be the greatest need of an owner is the essential capital is takes to build and operate it. Regrettably, in today’s economy, capital can be considered the most difficult resource to attain.

Looking back over the years, I remember a growing, healthy, and free enterprise system that always afforded each of us the opportunity to purse a life of abundance and plenty. Yes, it is still doable if we are willing to sacrifice and do what it takes to tackle the obstacles that come with entrepreneurship, but what has changed over the last decade are the challenges we face. The financial/banking system as we knew it—the moderate, risk-taking financial institution that would partner with small businesses to make their dreams a reality—is gone. They have all developed the mentality of “killing the golden goose,” where insatiability has overrun good business sense. After interviewing a number of bankers, their responses to loan lending have all but been the same sad song: “I have plenty of money to loan, but I can’t find business owners that qualify.”  “I’m in the loan-lending business, not the risk-taking business.” It used to be that having good credit was enough to qualify, but the mantra of our banking system today is “collateralize or no loan.”

Coincidentally, as loan lending has decreased so has the job market. If businesses do not have the resources required to grow, they cannot afford to operate and, unfortunately, cannot offer employment. If we do kill the golden goose that has made this country so very special for the growth and nurturing of our business opportunities, I’m afraid that a banking implosion may be right around the corner. There is only so much low-hanging fruit for the banking industry to share.

 I’m still a great believer in the free enterprise system, and so I am looking to 2012 for a better outlook on today’s loan lending business.

We will resume posting in January.

_{Mike Levi is C.E.O. of Levi Inc. a 19 year old business advisory firm that is in the business of building and implementing sales and growth strategies for emerging businesses.} 

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