Study Connects Small Business Credit Card Use to Job Creation
A new study confirmed conventional wisdom by linking small business credit card availability to job creation and revenue. Under commission by the American Bankers Association, Keybridge Research examined data from the Federal Reserve tracking and from Dun & Bradstreet. Reviewing a sample of over 4,000 representative small businesses, researchers measured the effects of expanded small business credit card offerings since 1990.

According to the study's findings, small business credit cards helped create over 1.6 million jobs in the United States, with more than half a million of those jobs emerging directly from small and medium-sized employers. Lenders and business owners teamed up to create over $142 billion in added value to the economy between 2003 and 2008, with every one percent increase in available credit resulting in a 0.14% revenue boost.

The study's authors cautioned that banks' reactions to volatile credit markets and to new credit card regulations could imperil small business owners, especially small, startup companies. The researchers estimate that successful startups often earn $5,500 in revenue for every $1,000 spent on company credit cards. Cutting off lines of capital to small businesses could hamper continued recovery and growth.

About the Author


Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.