Small businesses are still struggling after the financial crisis that lasted for 4 years. It is extremely tough for them to expand their offerings when practically no one wants to lend finances. But International Business Machines Corp. (NYSE:IBM) has taken a step forward and announced that it will not wait for the economy to do a turnabout. Instead, it will give $4 billion to small and medium businesses to get these companies to use their technology, thus forming a solid relationship that will pay off as the recovery and help these businesses to gain ground.
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Corporations are practically sitting on $3 trillion in cash and it has been suggested that a portion of the funds can be distributed to small businesses to speed up recovery. Ed Abrams, IBM's Vice President of Global Business Partners & Midmarket stated that this program of investing a billion dollars in and medium businesses is something that IBM had begun a year back. The funds should have lasted 18 months but it was spent in less than a year because around 7000 businesses used the cash to setup new technology solutions.
Now that technology has reached a point where analytics and cloud computing are as crucial to a small business as a big one, Abrams says that money is not an important factor anymore. A mobile app will let partners provide funds within minutes. Abrams elaborates that it is necessary for companies of all sizes to make an effort to improve the economy, because ultimately everyone will be benefited by it. It is all about helping customers to be smarter and not proving that the intellect of IBM is the greatest.