Daylight Savings

As we approach spring, the snow melts with the warm weather, the birds begin to chirp, and people begin to crawl out of their winter holes with sunglasses to see daylight.  Most likely, we will see a renewal of business, as people’s mood improve and consumers begin to spend again.  Additionally, daylight savings adds an extra hour of sunlight to our days and we can pack more work which means more productivity in those hours of sunlight.  Restaurants will once again place their tables outside, and bars and nightclubs will see an increase in business.

According to a study done at University of Michigan Ann Arbor, warm sunny weather improves mood, memory and creativity.  With this, we can hope to see that the “mood” of the financial market will also improve as investors will begin to invest back in small businesses, and those merchants who have survived the difficult winter will see an opportunity for expansion and growth.  The question is whether large and small banks alike will begin to loan to small businesses again.

Despite the fact that small businesses employ more than 50% of the workforce in the United States, they have been hit the hardest in this economic recession as banks scaled back their funding to them.  Most small businesses rely on banks for financing while large businesses obtain funding from private investors, selling stock, and large banks.