US Facing Tough Overseas Competition in Innovation

How long can the U.S. maintain its innvoative edge? That's the question Chris Penttila poses in this month;s "Entrepreneur" magazine. In July, France announced plans to invest $1.8 billion to create 67 "competitiveness centers" to fuel research and innovation. China is building a world-class university system to produce scientists, and now ranks third behind the U.S. and Japan in nanotechnology patents. Only 6 in 100 American undergraduate degrees are in the natural sciences or engineering. And in a December 2004 survey, American teenagers ranked 24th out of 29 industrialized countries in everyday math skills. Surprisingly, American companies now account for just 52 percent of US patents. The non-profit Council on Competitiveness, a 175-member group comprised of labor leaders, university presidents and CEO's is focusing on the issue, with a 21st Century National Innovation Agenda.

NY State Ranks Near Bottom in Small Business Survival Index

New York state ranked 44th amonth the 50 states in terms of policy environment in the 2005 Small Business Survival Index released by the Small Business & Entrepreneurship Council. Raymond Keating, chief economist for the council, and the survey's author told the "Westchester County Business Journal" that "politically, New York has a big-government philosophy, which leads to high income and property taxes. The costs of the state's policies are real and obvious, but it appears the policymakers talk themselves into ignoring the consequences of the economic choices they make." South Dakota, Nevada and Wyoming ranked at the top of the 2005 index, with the most small business friendly policy environment.

SBA Borrowers Seeing Higher Fees

An $80 million appropriation to cover the cost of issuing SBA guaranteed loans was removed from the congressional budget two years ago. While SBA 7a guaranteed loans continue to be made, the eliminated appropriation has mean loan caps, and higher fees place on lenders and borrowers, Keith Loria writes for the "Westchester County Business Journal." Nonetheless, the number of 7a loans initiated in Connecticut has hit 1,500, bettering the previous annual high of 1,200, helped by the SBA Express program, which offers much smaller loans so they can get processed more quickly.

Consumer Confidence Plummets to Lowest Level in Nearly Two Years

Consumer confidence plummeted close to a two year low in September, the Conference Board reported, as the overall index fell to 86.6, down from 105.5 in August (1985=100). "Hurricane Katrina, coupled with soaring gasoline prices and a less optimistic job outlook, has pushed consumer confidence to its lowest level in nearly two years and created a degree of uncertainty and concern about the short-term future," said Lynn Franco, Director of The Conference Board Consumer Research Center.

Small Business Loan Applications Getting Snagged by Poor Documentation

According to an Amercian Bankers Association survey of its member banks, 67% of small-business loan applicants typically lack the documentation they need, the "Westchester County Business Journal" reported. According to James Ballentine, director of the ABA Center of Housing, Community and Economic Development, the survey also found that applicants have an incomplete business plan 43% of the time, lack collateral 27% of the time. Responding bankers had the chance to give tips to potential loan applicants, these fell into five categories: 1) Be prepared, 2) Know how much you need, 3) Have a backup plan, 4) Nurture management skills, 5) Establish relationships.