Against the odds, phone answering services like Answer 1 Communications have learned to thrive by embracing the same technology that once threatened to replace them.

Hispanic and black businesses are receiving a disproportionately small number of federal stimulus contracts, creating a rising chorus of demands for the Obama administration to be more inclusive and more closely track who receives government-financed work.

A small comic book startup is using caricatures of President Barack Obama, Lady Gaga and other big names to drive up sales.

Bad debt has affected nearly half of all SMEs, according to research from business services firm CreditPal.

Over the last two years 43 per cent of small businesses have been left with an average of £7,500 owed to them as a result of trading partners or customers going bust. The firm estimates this could total around £5.3 billion in debts.  


Chris Poll, CEO of CreditPal, says: ‘The amount left owing to SMEs as a result of company liquidations is shocking and threatens the survival of some UK businesses. It is imperative that companies take every step to mitigate their exposure to the risk of defaulted payments, especially as the economy climbs out of recession when the need for cash is even greater.’

Of the 540 small businesses surveyed, London-based SMEs were worst hit by defaulted payments, with those in Scotland faring the best.

According to chartered accountants HW Fisher & Co, the number of businesses going bust is expected to rise dramatically later this year.

The total amount of company insolvencies was 19,077 in 2009, compared to 15,535 in 2008.

Small businesses believe that the government has failed them during the last 18 months.

Some 76 per cent of London business owners say Westminster has done little to help, according to research from accountancy firm Shelley Stock Hutter.

Of the 166 polled, 29 per cent say there is no credible contender for the role of Chancellor, while 35 per cent say they are backing George Osborne and just 9 per cent Alistair Darling.

Bobby Lane, partner at Shelley Stock Hutter, says: ‘Start up businesses have been particularly affected with most routes to funding blocked. The attitude of both the government and the banks is clearly stifling Britain’s entrepreneurial spirit. Ultimately, SMEs need to be reassured that they are working in an environment that will encourage them to prosper; maybe then they will put their faith back into politicians.’

Banks are leaving small businesses in the dark about reasons for loan refusals, a survey has found.

Some 21 per cent of small businesses denied bank funding do not know the reason why their applications were rejected, according to credit reference agency Graydon.
   


Phil Orford, chief executive at the Forum of Private Business, says: ‘Business owners are rightly expected to present proper financial information in order to boost their credit ratings so it is fair that lenders also communicate effectively and provide detailed reasons when finance applications are refused.’

Of the 750 SMEs surveyed, 19 per cent believe that access to finance will be the biggest hurdle for them this year, while 11 per cent cite weak financial performance as their main concern.

Martin Williams, managing director of Graydon, says: ‘The fear for business owners is that funding problems will continue throughout 2010. Recent reports that the Royal Bank of Scotland is lobbying the government to lower its business lending targets have done little to allay such concerns.’



According to Graydon, 41 per cent of applications during the second half of 2009 were refused on the grounds of insufficient security, 28 per cent because the business sector was deemed too high risk and 27 per cent on the basis of poor credit scores.

Recovery will be slower than originally anticipated with a double-dip recession likely, warns the British Chambers of Commerce (BCC).

BCC chief economist David Kern says: ‘The UK’s economic prospects remain uncertain, our recovery is fragile and risks of a relapse are high. Threats of a double-dip recession are greater in the near future than the dangers of higher inflation.’


The BBC says GDP growth is likely to average at just under 2 per cent per annum over the next four or five years, considerably less than the 2.7 per cent average growth recorded in the period 2003-07. 'Against this background, it is vital to ensure that wealth-creating businesses have adequate capacity to respond to an upturn in demand when the recovery strengthens,’ adds Kern.

David Frost, BCC director general, says that the government must use the forthcoming Budget to encourage a business-led recovery: ‘If it fails to do so, the recovery will take longer to gain momentum and may even slip into reverse. New business taxes must be avoided and unnecessary red tape suspended.'

The predictions come as lobby group the Confederation of British Industry (CBI) calls for the government to balance public finances by 2016, two years earlier than planned, in order to create economic stability.

Richard Lambert, director general of the CBI, says: ‘It is critical that this Budget provides credibility and direction on the public finances, and creates the right conditions for businesses to drive economic growth.’

Small businesses in the consultancy and business services sectors have seen profits fall during the last six months, finds a survey.

Some 52 per cent report a decline in margins compared with 18 per cent who have seen increased profits, says banking group Santander.


However, of the 218 businesses surveyed, 72 per cent remain confident for the first half of 2010.

Andy Homer, spokesperson for Santander Corporate Banking, says: ‘Confidence in [these] sectors remains high despite the continuing squeeze on profits. Firms are beginning to feel more positive that we are officially out of recession and it is encouraging to see high levels of positivity.’ 

Steve Diels, President of Aamcom, a provider of outsourced telephone customer service, had a major problem.

His sales data, client history and other essential information needed to run his business was scattered in various databases and systems - including Excel.

Most of Aamcom's clients are medical offices which rely on Aamcom to service their own clients over the phone.

With two locations, one in Sacramento and and Rodando Beach and a variety of operators working from home, Steve knew that with data about his clients (medical offices) scattered in different databases, Aamacom was not working as efficiently as they could to serve their needs.

Yelp , if you don't know, is an online review service that enables customers to rate and comment on the businesses they frequent. Whether it's a hair dresser, veterinarian, gas station or golf club, Yelp lets you rant or rave about it and rate it with stars. It's like a cross between a Zagats review of a restaurant and a Google search of a local business. The best of both worlds.

Yelp makes its money from advertising revenue that local businesses place to advertise their businesses within search results and payments to have more features and capabilities in their business listings.

However in recent weeks there's been some bad press about Yelp, in particular reporting on law suits that claim that Yelp sales reps have taken down positive reviews of local business who do not sign up for Yelp's advertising packages.

I spoke at length to Luther Lowe, Yelp's small business outreach coordinator who explained why these allegations are false and mainly due to a lack of understanding about Yelp, on the part of the businesses suing Yelp.

I was at my local dry cleaners today and she told me what a challenge it's been for her. Her prices for supplies are going up and customers are coming in less. Her story is repeated across this country.

Justin Kitch, chief growth officer of Intuit’s Small Business Group said that “Small businesses are more than at the heart of local communities. They’re also the foundation of local economies."

What can you do to help support YOUR local business?

He said this on the occasion of Inuit's Love a Local Business initiative which sheds the spot light on local businesses, across the country and encourages their local customers to vote for them and write words of praise about them.

If there's a small business (and their owner) you really like, nominate them and vote for them!

There are some excellent opportunities for recognition and cash prizes in this weeks' list of contests and awards, which is brought to you every other week by Small Business Trends and Smallbiztechnology.com.

*******

B2B Social Media Integration Case Study Challenge
Enter by March 12, 2010

This is your chance to join an expert panel at the B2B Forum session. How did your company boost ROI by integrating social media into your marketing strategy? Tell us your success story, and you could be telling it to the B2B marketing world in May. Complete this form and tell us your story!

The winner will become a panelist in the “Case Study Swap Meet! Proven Success Stories Integrating Social Media into Overall Strategy” session at the B2B Forum taking place on May 4-5 at the Seaport World Trade Center in Boston, MA.

I remember trying out my first tablet computer. (One of the first tryouts was in 2003). Basically it was a PC with a glass screen and a pen. At the time, it was a wonder.

Fast forward 7 years, HP come out with the HP EliteBook 2740p. It's an ultra-thin, multitouch-enabled convertible tablet that provides an interactive experience for businesses in health care, education, sales and more.

What's neat about this tablet PC is that it has touch capabilities, similar to what you'd find on a smart phone (such as the iPhone). It's one of the first tablet PCs with touch.

From marketing to startups, operations to policy that directly affects small business, the small business news roundup from Small Business Trends has it all. Here’s the latest installment of what we hope will become an indispensable part of your daily small business fix.

Marketing

Seth Godin talks “Creative Value.” Learn more about what he had to say at the recent “Art of Marketing Conference” in Toronto. Biz Money Matters

How helpful is Facebook for B2B Marketing? Tom Pick thinks aloud on the subject with some illuminatingRead More

From Small Business Trends

Small Business News March 10, 2010

Did you know that the Small Business Administration offers small business owners an online forum to share information and experiences with other business owners and subject matter experts alike?

Business.gov, which has long operated as the government?s official website for small business, not only brings together resources from across government to help small businesses start-up, operate and grow, it also operates an online Community (with more than 8,000 members) that enables business owners to interact directly with government and industry professionals, whileRead More

From Small Business Trends

Introducing “Business.gov Insights”: Tax Season Preparedness; Tips for Avoiding Filing Pitfalls

Last summer Google made SMBs owners very happy by releasing a new business dashboard for sites that claimed their Google Business Listing. The addition put actionable data and stats directly into SMB owners? hands so they could learn about the folks visiting their site and act on the information provided. Well, now it?s FourSquare?s turn to grown up. Yesterday everyone?s favorite location-based social network revealed new plans to provide SMBs owners a free dashboard and analytics tool to give them  importantRead More

From Small Business Trends

FourSquare Adds Analytics, Real Business Value

Recently I blogged about President Obama?s proposal to help community banks lend more money to entrepreneurs. For many small business owners in the Great Recession, community banks have been a lifeline.

But that lifeline could be about to snap. The Congressional Oversight Panel, which monitors the financial bailout, just released a report on the state of commercial real estate lending?and the news is not good.

“There’s been an enormous bubble in commercial real estate, and it has to come down,” panel chair ElizabethRead More

From Small Business Trends

Looming Commercial Real Estate Crisis Threatens Small Businesses

It’s time for another addition of our small business news roundup here at Small Business Trends. We hope you find these roundups useful and will visit some of the stories we’ve recommended being sure to let them know where you heard about their post or article.

Marketing

Is the idea of viral marketing a bit too contagious? Viral marketing may not be good for every business so keep in mind it’s a means not an end. Right Ideas/Bright Ideas

Getting personal with your marketingRead More

From Small Business Trends

Small Business News March 9, 2010

The question is whether it will be a game changer?

Google has officially launched its Apps marketplace this week. These are third party applications progammed to integrate with everything else you or your company has sitting on the Google cloud (i.e. Gmail, Google calendar, Docs&Spreadsheets, etc.).

The Good

These apps are built to seamlessly integrate with other Google offerings (like Gmail, for example). Ideally you can do all your work in one universe with one password. How handy!

The Bad

These apps are built to seamlessly integrate with other Google offerings (like Gmail, for example). So, what happens to your business when Google has another one of their day-long or even 3 hour outages?

The Ugly

These apps are built to seamlessly integrate with other Google offerings (like Gmail, for example). As the video below demonstrates, it is as easy as pie to set up an app on your network. Step one: give the third party app maker carte blanche access to all your Google accounts (that's Gmail, the calendar, files, etc.) so that it can do all that promised seamless integration.

((insert the souind of a car screeching to a halt))

The idea is to hand over the keys to your data kingdom to a thirdy party company (two college drop-outs working out of their parent's basement).

What about network security?

What about compliance?

If someone isn't already doing it, how long will it be before all the bottomfeeders who create elaborate phishing schemes and DNS attacks think to create apps just to get access to company information?

The stereotype startup guy or gal is a high energy, always schmoozing, hard pitching and hand-shaking go-getter. But since 50 percent of the population are identified by psychological studies as introverts, that stereotype might need some examining.

But most people believe there?s some sort of stigma about being an introvert, according to Nancy Ancowitz, author of Self Promotion for Introverts and blogger for Psychology Today. Ancowitz is a self-proclaimed introvert with a history in both large companies and her own enterprises. Many introverts, she says, ?make great entrepreneurs.? Introvert stereotypes include being more considered, looking inward for approval and guidance, and researching problems looking for perfect answers. These same characteristics can make great business leaders.

What advice can help the introvert succeed in a startup? Ancowitz says ?When selling as an introvert, use your abilities as a good researcher to really know audience, know what matters to them, and figure out a product match before you go in. You?ll be meeting with people, so rest up before social interactions with those you are selling to or speaking in front of. Prepare and practice because as an introvert you will think before you speak - as opposed to extroverts who speak as they think. So having a few lines ready, or thoughts composed in advance will be beneficial. Rest, prepare and practice is the magic formula because of the way introverts are wired.?

That seems to work for Adelaide Lancaster, co-founder of In Good Company Workplaces, a community and workspace for women entrepreneurs in NYC that provides events, consulting, shared desks and meeting rooms. As a graduate student in a psychology program, Lancaster found out she was an introvert. In 2003 she formed a consulting practice helping women in professional transition. It was research and data driven. ?As an introvert it was more comfortable being a resource instead of being in an interpersonal mode all the time. Now I?m in business now with an off-the-charts extrovert. Our focus is on entrepreneurs, and our consulting led into creating the workspace.?

Lancaster gave me a tip for startup introverts. ?While putting your business model in place, feedback is a critical component, but introverts may close themselves off to that - it might not occur to them to ask others for advice. They need opinions and iteration.? Lancaster didn?t talk to lots and lots of people, but she strategically chose 5 people to check in with and get advice from. She also notes ?There's an opportunity cost if you're not connected to other business owners - if you over-emphasize research it can prevent you from finding easy solutions to your problems right, in your business network.? Lancaster uses Twitter and LinkedIn groups to connect with business resources and share tips.

This connects well with Ancowitz?s advice to ?Get known as an expert, and build deep and meaningful relationships. Introverts do well with deep relationships and conversations rather than chit-chat. Be generous in introducing people to each other as well. Then it?s easier for you to ask for introductions from your good contacts.? She also notes ?if you're an introvert there may be activities you'll like more than others, like writing or speaking to one person at a time. There are many ways to market with quiet activities like blogging, using Twitter, writing for newsletters, and doing guest columns that can help you promote yourself.?

Any introverts out there? Share your tips and tricks in the comments below.

(Disclosure: I am quoted in Ancowitz?s book as an expert and an NYU colleague. We both teach at NYU SCPS, but I did not hire her or have a business relationship with her. I report on the book not because of my quotes in it, but because it?s an important guide for those who may have trouble promoting themselves, and that's why I agreed to be interviewed.)

Happy Birthday Craigslist. The schlubby classified ad site, which managed to blow up the newspaper business by behaving decidedly unbusinesslike, was founded nearly 15 years ago, according to a blog post from the site's eponymous founder Craig Newmark. He digs up what he calls "the earliest archaeological find" from the site's early days. It's a message directing users of the Well, an early social network, to Newmark's new home page. "My focus, on this page, is on events around San Francisco that involve arts and technology, privacy rights, local writers and artists, and any other item that strikes my fancy," he wrote. "The approach is as minimalist as I could make." PSFK, which flags the post, puts it in perspective, "From that simple start, today the site serves over twenty billion page views per month, putting it in 37th place overall among web sites worldwide and 11th place overall among web sites in the United States."

When is it okay to check your cellphone? If you're having dinner with your spouse and your phone buzzes with a text, do you reach for it? If you reach for it, do you text back? In Farhad Manjoo's house, that would be verboten (at least not without asking permission). In fact, one shouldn't text at all when having a face-to-face conversation, according to Slate's attempt to set the ground rules for cell phone use. On Twitter last week, young technophiles like the New York Times's Nick Bilton argued the opposite. When Bilton's lunching with his boss he leaves his phone alone, but around other tech-savvy people his own age, he texts without compunction. We're hoping the bit about his wife texting him to get his attention during dinner was a joke.

Google begins selling business software. Apple's iPhone App Store has created a billion dollar opportunity for small businesses that develop applications and games for the popular gadget. Now Google is trying to pull off the same trick for business software, which could be great news for business-to-business companies in need of customers. TechCrunch reports on the release of the Google Apps Marketplace, which allows companies to sell web-based business software that integrates with programs like Gmail and Google Docs. The app strategy will undoubtedly improve Google's already impressive (and free) software offering. But it could also be an opportunity for entrepreneurs. "For...small startup developers, it means instant access to more users than they can likely imagine," TechCrunch writes. "It also potentially means something more important: money."

How to handle employee turnover. Entrepreneur turned venture capitalist Mark Suster posted on his blog, Both Sides of the Table, about how the difficulty of moving from one job to the next. On A VC, Fred Wilson responds by breaking down the issue from every side: the employee, the current employer, and the future employer. One recommendation: If a key employee leaves suddenly, it's worth exercising some patience before bringing an outsider onboard. In that scenario, a "battlefield promotion" might be the best option.

Charting the Facebook economy. We've written in the past about the dangers of building your business on someone else's platform. But many companies, undeterred by that risk--and attracted by the prospect of hundreds of millions of potential customers--have built business models that rely heavily on Facebook. The Guardian takes a stab at estimating the size of the Facebook economy, figuring that among a slew of companies such as Playfish, Zynga, and Plancast, the social network's broader economy is easily worth several billion dollars. The article asks "whether [Facebook is] a viable ecosystem, a bubble or a house of cards."

How to simplify your phone system. Can't get an invitation to Google Voice, the free service that transcribes voicemails and rings multiple numbers? (Read more about Google Voice here.) A start-up called Phonebooth.com is attempting to pick up the slack, Mashable reports. The website is now offering Phonebooth OnDemand, which is a full-featured phone service that will set you back $20 a month per user. The no-cost version, which is called Phonebooth Free and is aimed at small businesses, will give you a local number with up to five extensions, call-forwarding to multiple sources, and voicemail with transcription.

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CNN just published an article on a prototype that is being developed in London that could forever change the way we drive and consume resources. Volvo is working with Imperial College scientists to develop a car that would use composite materials to act as its own battery. Aside from the enormous cost savings for consumers, this would also help to reduce carbon footprints and natural resource consumption.

This is not the first attempt that has been made in this area. In 2008, the Paris Motor Show unveiled ?The Eclectic,? a self-powered electric car that had been designed by French carmaker Venturi.

It does not look like a bastion of safety.

Curt's company has software that helps the accidental project manager.