To perform optimally and compete with big companies, America’s small businesses need access to low-cost financing, which is easily available to large corporations. Due to the unavailability of low-cost capital resources, entrepreneurs have to depend on high-interest loans because of which 70% of small businesses throughout the US have gotten into debt traps. Furthermore, as small businesses have limited capital to deploy, they can also not recruit the best talent because they cannot offer high salaries at par with big companies. Another constraint experienced by small business owners due to lack of access to low-cost funds is their inability to make technological investments.
