News / USA

Small Businesses Offer Taste of Economic Growth

TEXT SIZE - +
Peter Fedynsky

A flurry of upbeat reports show a U.S. economy recovering from the worst recession in decades and headed for expansion.

But this week's improved figures for housing, jobs, rising stock prices and modest inflation, represent a few measurements of growth.

At a small business in Jersey City, New Jersey, Felicia Grasso is hoping to contribute to the growth in her own unique way.

Since opening her cupcake store, Sophie Sophia, two months ago, she says treats she bakes bring cheer and represent an inexpensive symbol of better times.

"It’s something tangible right now," she says. "[For] people that have fallen on hard times, the cupcakes are not very expensive."

Grasso's shop, with two employees, is just one of 14 retailers on the ground floor of Hamilton Square, a new apartment building that developer Paul Silverman says is directly responsible for 150 jobs, and indirectly responsible for hundreds more.

"FedEx delivers to the property, UPS is delivering; the service companies -- the window washer that’s there every day, the air conditioner repair people, the doormen that are in the building," he says, adding that he secured a loan to develop Hamilton Square before the 2008 financial crisis.

Otherwise, he explains, the ensuing credit crunch would have blocked the project. But he says banks seem ready to lend again.  

"I wouldn’t say it’s back to the 2005-2006 levels of interest, but we have banks calling us now, which is a great thing," he says.

Nonetheless, Sam Stovall, chief investment strategist at the Standard and Poor’s market research firm, says banks are cautious.

"I think the concern though is still that banks are only calling up those people whose credit quality is pristine," says Stovall.

Business owners are borrowing carefully, he says, noting continued concerns about high U.S. unemployment and economic uncertainty overseas. But, he adds, consumers are tired of holding back.

"They’re tired of denying themselves going out and spending, and they spent going into the holidays and, at least so far, are continuing to do that," he says.

But even for those consumers who remain extra cautious, seeking only a small reward, proprietors like Grasso are well positioned to deliver.

"You don’t have to spend a lot of money to get that feeling, and it’s right away, it’s gratification, it’s your favorite flavor," says Grasso. "You’re having a bad day and you come in and, ‘oh, she has lemon today -- that brightens up my day.' "

U.S. employment and retail sales improved slightly in January, an uptick in which Felicia Grasso’s cupcakes played a small -- and customers might say tasty -- role.

You May Like

India, China Pledge to Overcome Border Tensions

Indian prime minister and Chinese premiere attempt to move past tense standoff in the Himalayas during Delhi talks More

Burmese President Opens US Visit with VOA Town Hall Meeting

Ahead of his meeting with President Obama Monday, Thien Sein answered questions on human rights and economic development in his country More

Video Washington Week: Focus on Burma, US Government Scandals

President Thein Sein visits the White House on Monday, Congressional probes of multiple scandals are continuing More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Video

Video Annual Event Helps Torture Treatment Center

Once a year, an event called Big Sunday Weekend mobilizes volunteers to help at different organizations and schools. One of the places volunteers visited this year is the Program for Torture Victims, a torture treatment center in Los Angeles. The center helps survivors heal and also provides testimony to help them gain asylum in the United States. From 2010 to 2012, the Program for Torture Victims worked with close to 700 survivors from more than 65 countries. Elizabeth Lee has details from Los Angeles.