Small and Medium-Sized Enterprises (SMEs) are the backbone of the U.S. economy, accounting for 99.9% of businesses and driving job creation.
It’s for this reason that Liquida Capital has stepped up to help small businesses scale and drive employment. Andre Dowdell Jr., CEO of Liquida Capital, explains that the company supports businesses of all sizes. However, he believes it is especially important for start-ups and entrepreneurs to realise that financial help is available, as many opt out of applying for loans, believing their applications will be turned down.
“There are 33 million small businesses nationwide,” he says. “These are responsible for around two-thirds of the new jobs in the U.S.”
He explains that for this reason, empowering small businesses to become industry giants is a step towards a more robust economy.
Starting small to create big changes
“SMEs are often at the forefront of innovation,” says Andre. “They drive innovation in lucrative areas such as tech, health, green energy, and the service sectors. At the same time, many scalable ideas are born in small start-ups before being adopted on a larger scale.”
Andre continues: “While large corporations dominate headlines, small businesses contribute roughly 44 percent of U.S. economic activity.”
Partnerships have been a defining aspect of Andre’s career journey. He started his career as the owner of a car-related business shortly after leaving a career in professional football. He says that he learned to apply the principles of teamwork and strategy he had learned on the field to the workplace, and it was in forming strong alliances that he managed to leverage his start-up to a seven-figure revenue enterprise.
Unique solutions for unique challenges
“Start-ups and small businesses have many challenges,” he says. “I have learned firsthand that it is not easy to make it out there. However, I persisted with my own business and eventually accumulated the capital needed to start Liquida Capital, which now pays it forward to uplift others’ start-ups, so that they, in turn, can reach out to others.”
He said start-ups experience their most significant obstacles in the early stages. “Banks are often hesitant to lend without solid credit history, collateral, or proven cash flow.”
If they then do make it, to scale a business is tough. “Common issues include managing cash flow, hiring the right team, and upgrading infrastructure,” explains Andre. Still, growing too fast can be as dangerous as not growing at all, he believes.
“Cash flow management is possibly the biggest challenge,” says Andre. “Many SMEs and businesses looking to scale struggle with irregular income and delayed payments. Even profitable businesses can go under if they can’t manage day-to-day cash needs. Seasonal businesses are especially vulnerable.”
Andre says he has a dream of funding thousands of businesses, and that over the past year, Liquida Capital has invested millions in its business clients. It has been able to do this through partnerships with big U.S. banks.
“For businesses needing someone to facilitate loans and offer accessible, flexible financing options, we provide an effective solution,” he says. “For me, it’s about seeing the bigger picture, the economy, and then working out financing solutions business by business.”