3 Things You Should Know About Small Business: August 22
"Historically, the organic growth of franchising has come from these people, these business folks, that we're talking about, who brought 10% to 20% of their savings to the table. They often financed about 80% out of the net worth in their home. And today, if any banks are lending, and they are not, they want 40% or 50% down, and there is no equity in anybody's home, practically," Amos says.
"So if you're looking at the franchisers who are attempting to scale and drive business in the United States, that becomes extraordinarily difficult. If you're looking at the franchisee who just wants to pursue their dream, it's almost impossible," he says.
3. Green energy startups turning toxic for investors. Falling energy prices and dialed-back government assistance for so-called green energy businesses are causing investors to rethink putting money into the sector, according to CNNMoney.
Specifically, a historic slide in natural gas prices is hurting the competitiveness of alternative energy as well as proposed budget cuts that would result in lower government assistance for wind farms, solar panel manufacturers, ethanol producers and makers of alternative fuel cars, CNNMoney says.
Some investors are responding by refusing to lend to green energy companies, especially startups, unless they can prove they can be profitable on their own, the article says.
-- Written by Laurie Kulikowski in New York. Follow @LKulikowski
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