From the Affordable Care Act to the aging baby boomer population, healthcare is top-of mind for most Americans.
Small businesses are cashing in on the boom in healthcare offerings.
A recent Wall Street Journal article pointed out the rapidly increasing number of small businesses providing a variety of services and products to this sector.
According to a recent U.S. Bureau of Labor Statistics’ report, the U.S. healthcare market has continued to outpace job growth in the rest of the economy, adding an average of 23,000 new jobs each month over the past year. The S&P 500 reinforces the burgeoning progress by revealing it has the second-fastest growing stocks on the market, trailing only energy.
Daniel Smith of Paramount Merchant Funding believes “this is great news for small business owners, as healthcare historically has been a proven indicator and foreshadower of growth.
“At Paramount, we’ve started to provide financing to healthcare sectors that we’ve never financed before and more than doubled our offerings in certain segments within the first quarter of 2013,” he added.
Paramount Merchant Funding, who provides working capital to small businesses and experienced a record-setting month in April, sees an increase in business as a sign of growth, reinforced by the specific types of financing the businesses are requesting.
He shed light on the types of requests they are receiving, specifically from healthcare facilities looking to:
- Propel Expansion – With an increasingly aging baby boomer population, organizations are looking to prepare for brand growth with necessary expansions and new facilities. This is extremely pertinent with the rapid growth of nursing homes, assisted living communities and urgent care facilities.
- Purchase Inventory – With the rise of medical innovations, especially from the pharmaceutical and device sectors, many physician, dental and veterinary facilities are investing in new technologies, products and supplies. To remain competitive, companies want to offer the latest and greatest solutions.
- Hire Employees – As the highest industry generator of jobs in the first quarter, healthcare organizations are trying to keep up with the increasing demand of new patients and new legislation on the horizon.
- Increase Marketing – During the downturn, it seemed as if marketing was the least of every small business owner’s worries. Now, medical-based businesses are once again looking to reach new targets and expand their customer base due to the increasing competition throughout the marketplace.
Smith reinforced that these are four common investment trends that he’s currently seeing among small business owners. Although healthcare seems to be the first to experience significant growth, he predicts many other industries to follow, especially technology, construction, and food and beverage.
With the National Federation of Independent Business’ (NFIB) Small Business Optimism Index at 92.1 and higher nominal small business sales in the first quarter, indicators are pointing toward change for the better.
Daniel Smith is a Managing Partner at Paramount Merchant Funding www.paramountmerchantfunding.com