Small business: the backbone of California
According to the U.S. Small Business Administration’s 2019 Small Business Profile, there are 4.0 million small businesses in California, which accounts for 99.8% of California businesses. Collectively, small businesses employ 7.1 million workers representing 48.8% of California employees. In February 2019, the unemployment rate was 4.2%, down from 4.3% from the same time last year.
So far this year, the SBA Office of Advocacy’s Economic Bulletin for March 2019 showed gains in the number of employer small firms, owner’s income, and net job creation.
Small-business lending – commercial and industrial plus commercial real estate loans under $1 million – increased 8% over the last five years keeping up with inflation. Large business lending rose 36% during the same time period. The recovery of small business lending remains tentative, even with low loan delinquency rates.
As important as small business is to the state’s economy, building a great business takes focus, determination, patience, and time to build, along with passion, knowhow and an entrepreneurial inclination. It also takes trusted professionals to help navigate the finer details of running a business.
When it comes to choosing a banking partner, today’s business owners and managers are looking beyond the transactional side of what is offered. They are seeking a relationship that provides expertise in their specific area and a bank that is willing to work with them as a Trusted Advisor to help achieve greater success. Woven into that relationship, businesses seek a bank that demonstrates a techno-savvy, client-focused, community-minded, and relationship-driven approach.
When looking to enter a banking relationship, entrepreneurs should seek out banks that have shifted from the traditional product focus to a more client-centric strategy, which tends to be more relevant and engaging while delivering solutions. In return, banks should be willing to cultivate an even deeper knowledge and understanding of their customers so they can tailor offers and services based on a customer’s account activity, needs and preferences.
Lastly, to achieve trust, banks must demonstrate their dedication to a broader purpose. They need to prove they are not just driven by quick profits, but also by shared values. There is tremendous value in working with a client-focused, relationship-driven banker that will invest the time necessary to truly get to know a business and understand its unique needs. The path to long-term success is for businesses to develop long-term relationships with bankers who demonstrate expertise, experience and dedication to their success.
As part of an ongoing effort to be a resource for both new and established business owners and decision makers, Mission Valley Bank is hosting a complimentary California Employment Law update breakfast seminar on Thursday, Nov. 7, at the Angeles National Golf Course in Sunland/Tujunga. Brian E. Koegle, partner with Poole Shaffery & Koegle LLP, specializes in employment law representing business interests and will be the featured presenter.
Topics to be covered include the latest changes in independent contractor classification; meal and rest period claims and best practices to avoid claims; calculating overtime payments for non-exempt employees; training requirements for antiharassment and bullying in the workplace; employment arbitration agreements in California; and, a preview of new laws for 2020. Seating is limited and reservations are required. To RSVP contact Anton Krotov at 818.394.2362 or email akrotov@missionvalleybank.com.
Steve Nuñez is vice president and relationship manager at Mission Valley Bank, a locallyowned, full-service, independent community business bank with Preferred SBA Lender status serving the San Fernando and Santa Clarita Valleys. Steve can be reached at (661) 753-5681 and by email at SNunez@missionvalleybank.com or at www.MissionValleyBank.com.