This is a very thoughtful take on the frozen jobs market among small businesses, from The American's Scott Shane. Here are his five explanations, but they can be summed up this way: real estate recessions hit small businesses harder.
1. Declining house prices have softened demand for small businesses' products and services.
2. Small businesses are overrepresented in the real estate-related industries that have been decimated by the residential housing market collapse.
3. Small business owners use their homes to obtain business credit.
4. Banks have tightened lending standards in response to a rising share of non-performing real estate loans.
5. Small business owners were major customers of residential real estate loans during the boom, making them among the consumers hardest hit from the collapse in home prices.
Read the full story at The American.