PRESS-NEWS.org - Press Release Distribution
PRESS RELEASES DISTRIBUTION

Lack of credit forces many small business owners to finance with personal assets

MU researcher says business owners can put their households at financial risk

2011-03-02
(Press-News.org) COLUMBIA, Mo. – Small businesses are seen as an important part of the American economy. These businesses often rely heavily on loans to stay afloat. The recent economic recession has created a reduction in available credit for many small businesses, making it difficult for many businesses to operate. Tansel Yilmazer, assistant professor in the personal financial planning department in the College of Human Environmental Sciences at the University of Missouri, says that lack of available credit has forced many small business owners to use their household savings or other personal assets to support their businesses, putting their personal assets at risk.

Yilmazer says that due to the present reduction in credit availability, small and family-owned businesses look to reduce their dependence on outside financing by utilizing two general strategies. The first strategy involves diminishing or eliminating the need for financing by reducing the cost of operations and carefully managing the cash flow of the business. The second type is to acquire finances by raising money from personal and other sources external to the business without resorting to bank loans.

Yilmazer says that businesses that use owner resources and delay payments for household expenses are the ones that typically report a need for further financing for their businesses. Because these business owners have not established relationships with banks, they may face problems obtaining future bank loans. Yilmazer says the recent recession has affected the direction of the resource flow from household to business and the owners might be putting their own assets at risk for the business.

"Recession has increased the risk of business failure," Yilmazer said. "Since business is inherently risky, financing with owner resources would seem to extend that risk to the household in ways that owners may not be adequately considering."

Yilmazer found that the use of financial resources is a two-way street in small and family-owned businesses, confirming that the family and business interact and resource exchanges occur in both directions. She says that while small businesses can provide income for households, owners need to be aware that financing a business from household funds opens the door for household assets to become susceptible to loss.

"Business ownership is an important household investment," Yilmazer said. "Ownership may serve as a source of income and expenses as well as an investment vehicle, but it is not generally understood or considered as a household portfolio risk. Small and family businesses may be riskier than other investments because they are more susceptible to attrition."

INFORMATION:

Yilmazer's study was published in the Journal of Family and Economic Issues and was co-authored with Holly Schrank from Purdue University.

END



ELSE PRESS RELEASES FROM THIS DATE:

Latest American Chemical Society podcast: Sewage plant waste water as a huge new energy source

2011-03-02
WASHINGTON, March 1, 2011 — The latest episode in the American Chemical Society's (ACS) award-winning podcast series, "Global Challenges/Chemistry Solutions," focuses on the discovery that household sewage has far more potential as an alternative energy source than previously thought. Scientists say the discovery, which increases the estimated potential energy in wastewater by almost 20 percent, could spur efforts to extract methane, hydrogen and other fuels from this vast and, as yet, untapped resource. Their report appears in ACS' journal Environmental Science & Technology. ...

Spotlight on autism research

2011-03-02
Despite substantial gains in knowledge and understanding of autism over the last three years, we are still no closer to either prevention or cure, according to Sir Michael Rutter, Professor of Developmental Psychopathology at the Institute of Psychiatry, King's College London. In a new study, Rutter reviews the latest scientific developments in the study of autism, published between 2007-2010. His paper is available online in Springer's Journal of Autism and Developmental Disorders. Professor Rutter is the first consultant of child psychiatry in the United Kingdom. He has ...

Don't underestimate the power of herbal teas

2011-03-02
Those who enjoy the caffeinated lift that comes from drinking traditional coffees and teas may tend to overlook the benefits of drinking herbal infusions. Now, as explained in this month's issue of Agricultural Research magazine, the idea that herbal teas may provide a variety of health benefits is no longer just folklore. U.S. Department of Agriculture (USDA)-funded scientists in Boston, Mass., have looked into the science-based evidence of health benefits from drinking three of the most popular herbals in America. Diane McKay and Jeffrey Blumberg are at the Jean Mayer ...

New Baylor study shows higher job performance linked to people who are more honest and humble

2011-03-02
The more honesty and humility an employee may have, the higher their job performance, as rated by the employees' supervisor. That's the new finding from a Baylor University study that found the honesty-humility personality trait was a unique predictor of job performance. "Researchers already know that integrity can predict job performance and what we are saying here is that humility and honesty are also major components in that," said Dr. Wade Rowatt, associate professor of psychology and neuroscience at Baylor, who helped lead the study. "This study shows that those ...

Rare 89 million-year-old flying reptile fossil from Texas may be world's oldest Pteranodon

Rare 89 million-year-old flying reptile fossil from Texas may be worlds oldest Pteranodon
2011-03-02
Fossilized bones discovered in Texas from a flying reptile that died 89 million years ago may be the earliest occurrence in the world of the prehistoric creature known as Pteranodon. Previously, Pteranodon bones have been found in Kansas, South Dakota and Wyoming in the Niobrara and Pierre geological formations. This likely Pteranodon specimen is the first of its kind found in Texas, according to paleontologist Timothy S. Myers at Southern Methodist University, Dallas, who identified the reptile. The specimen was discovered north of Dallas by an amateur fossil hunter ...

New study: Medical and financial impact of drug-related poisonings treated in US EDs

New study: Medical and financial impact of drug-related poisonings treated in US EDs
2011-03-02
VIDEO: Dr. Gary Smith, director of the Center for Injury Research and Policy at Nationwide Children's Hospital, explains that, over the past decade, drug-related poisonings have been on the rise in... Click here for more information. Over the past decade, drug-related poisonings have been on the rise in the United States. In fact, in many states drug-related poisoning deaths have now surpassed motor vehicle crash fatalities to become the leading cause of injury death. While ...

Signaling path in brain may prevent that 'I'm full' message, UT Southwestern scientists discover

2011-03-02
DALLAS – March 1, 2011 – Researchers at UT Southwestern Medical Center have identified a signaling pathway in the brain that's sufficient to induce cellular leptin resistance, a problem that decreases the body's ability to "hear" that it is full and should stop eating. "Leptin resistance is a significant factor, yet the mechanisms that underlie the problem remain unclear," said Dr. Joel Elmquist, professor of internal medicine and pharmacology at UT Southwestern and senior author of the study appearing in the March issue of Cell Metabolism. "The fact that this cellular ...

Policies to reduce medical residents' fatigue may compromise quality of training

2011-03-02
ROCHESTER, Minn. -- Recent Accreditation Council for Graduate Medical Education (ACGME) limits aimed to enhance patient safety may compromise the quality of doctors' training, according to a study by Mayo Clinic researchers published in the March issue of Mayo Clinic Proceedings (http://www.mayoclinicproceedings.com). Patient safety has long been a critical concern for hospitals, in particular for those training new doctors. Since 1984, when the death of 24-year-old Libby Zion at a New York hospital was attributed to an overtired medical resident, training programs have ...

Building trust with cooperative witnesses in a crime investigation

2011-03-02
GREENSBURG, PA—March 1, 2011— Imagine that you witness a crime. The police investigator brings you to the police station to obtain an official statement, but between the crime and your official witness statement, you are exposed to other (potentially inaccurate) information about the crime. Before administering the criminal interview, the investigator asks you a litany of mundane demographic questions in a dry and uninterested manner, then moves directly into the interview about the crime. Would you feel comfortable? Most importantly, would your report be accurate and detailed, ...

Measuring methane

2011-03-02
MADISON, WI, MARCH 1, 2011 – Methane is an extremely potent greenhouse gas. Wetlands, gas hydrates, permafrost, termites, oceans, freshwater bodies, non-wetland soils, are all natural sources of atmospheric methane; however, the majority of methane presence ca n be accredited to human-related activities. These activities include: such as fossil fuel production, biomass burning, waste management and animal husbandry. The release of methane into the atmosphere by cattle and other large grazing mammals is estimated to account for 12 to 17% of the total global methane release. Recently, ...

LAST 30 PRESS RELEASES:

Singles differ in personality traits and life satisfaction compared to partnered people

President Biden signs bipartisan HEARTS Act into law

Advanced DNA storage: Cheng Zhang and Long Qian’s team introduce epi-bit method in Nature

New hope for male infertility: PKU researchers discover key mechanism in Klinefelter syndrome

Room-temperature non-volatile optical manipulation of polar order in a charge density wave

Coupled decline in ocean pH and carbonate saturation during the Palaeocene–Eocene Thermal Maximum

Unlocking the Future of Superconductors in non-van-der Waals 2D Polymers

Starlight to sight: Breakthrough in short-wave infrared detection

Land use changes and China’s carbon sequestration potential

PKU scientists reveals phenological divergence between plants and animals under climate change

Aerobic exercise and weight loss in adults

Persistent short sleep duration from pregnancy to 2 to 7 years after delivery and metabolic health

Kidney function decline after COVID-19 infection

Investigation uncovers poor quality of dental coverage under Medicare Advantage

Cooking sulfur-containing vegetables can promote the formation of trans-fatty acids

How do monkeys recognize snakes so fast?

Revolutionizing stent surgery for cardiovascular diseases with laser patterning technology

Fish-friendly dentistry: New method makes oral research non-lethal

Call for papers: 14th Asia-Pacific Conference on Transportation and the Environment (APTE 2025)

A novel disturbance rejection optimal guidance method for enhancing precision landing performance of reusable rockets

New scan method unveils lung function secrets

Searching for hidden medieval stories from the island of the Sagas

Breakthrough study reveals bumetanide treatment restores early social communication in fragile X syndrome mouse model

Neuroscience leader reveals oxytocin's crucial role beyond the 'love hormone' label

Twelve questions to ask your doctor for better brain health in the new year

Microelectronics Science Research Centers to lead charge on next-generation designs and prototypes

Study identifies genetic cause for yellow nail syndrome

New drug to prevent migraine may start working right away

Good news for people with MS: COVID-19 infection not tied to worsening symptoms

Department of Energy announces $179 million for Microelectronics Science Research Centers

[Press-News.org] Lack of credit forces many small business owners to finance with personal assets
MU researcher says business owners can put their households at financial risk