The economic environment is turning around for America’s small businesses despite some lingering challenges from the recession that hit the nation in 2008-2009, according to a new report by the U.S. Small Business Administration (SBA) Office of Advocacy, an independent office that serves as the voice for small business within the federal government.

“The Small Business Economy 2012 demonstrates that small businesses have been at the core of our economy’s growth over the past few years,” said Dr. Winslow Sargeant, chief counsel for Advocacy. “Thanks to hardworking small business owners across the country, 2011 represented the second full year of economic expansion since the peak of the recession in 2009, with small businesses representing half of the private-sector output. We still have a lot of work to do, but this report tells an inspiring story: output, business income and profits are rising for small businesses, and bankruptcies and unemployment are declining.”

The report said total business lending continued to increase by June 2012; the rate of decline slowed for small business loans of all size categories. Funds raised by venture capital firms increased, and disbursements increased to levels comparable to those in 2006.

To read or download a complete version of the full report click here.