Although the economic climate this past year has been a struggle for both consumers and businesses trying to stay afloat, 2013 bodes well, according to newly published reports and several economic changes occurring in 2013. These reports are good news for businesses and should help lead America to economic recovery.
Proposed Tax Cuts Means More Spending Money
The government instituted tax cuts for 2013, including a cut in employees’ Social Security taxes, meaning consumers will be taking home more money in each paycheck this coming year. More money in consumers’ pockets typically promotes a rise in consumer spending, benefits businesses, and helps the economy recover more swiftly. According to economists, consumers are boosting their spending habits at a faster pace now than compared to the past four years.
Venture Capitalists Have Money to Invest
Although the venture capital dried up like Death Valley after the 2007 financial crisis, a survey conducted by the National Venture Capital Association with the Dow Jones VentureSource claims that venture capitalists will focus their funds in 2013 on tech start-ups. The survey also shows that venture capitalists are positive about economic growth overall, with 51 percent expecting investments to increase for 2013. When investors are willing to back new businesses, this often helps propel economic growth, meaning 2013 is looking up for many industries.
Consumer and Investment Spending Set to Increase
The 2013 economy is set to support increased consumer and investment spending, meaning businesses will benefit from both. The sectors predicted to explode in 2012 include digital and internet media aimed at the consumer, including cloud computing. Stocks are also on the rise, which promotes active investment from both brokers and individual investors, which also helps boost a sagging economy.
How Businesses Benefit
Businesses that take advantage of all the positive changes will likely see growth in 2013. The tax cuts and increased consumer spending, coupled with venture capitalist interest and higher stock prices, should help boost the economy in 2013 – which will help existing grow as well.
Remembering that consumers are starting to spend more, focusing your printed marketing materials on attracting budget-conscious consumers will help grow your business in 2013.