Entrepreneurs struggle to hang on across the USA

— -- If there is a rock and a hard place in the U.S. economy, small businesses are there.

Right in that little crevice where money is tight — and getting tighter. Right where weekly payrolls can be financed only by personal credit cards or home equity loans. And right where "income" for the boss is taking five bucks from the till and paying for a sandwich that day for lunch.

"Small businesses are in a real tough spot now," says Todd McCracken, president of the National Small Business Association.

The term "credit markets" sounds so esoteric. But for many companies that are nowhere near the Fortune 500, the credit markets are a very practical place to be. It's where bankers and other lenders decide if their small business will get money to buy goods, expand or pay employees — or not.

"The economy is very scary right now," says Judy Robertson, who runs Judy's Pet Depot on Los Angeles' west side. "As for me, being a small-business owner, I've felt it."

Even before the credit markets really seized up in September, which led to talk of a $700 billion bailout of financial institutions, small-business owners were asked if their business had been affected by the credit crunch. In August, 67% said yes, up from 55% in February.

To get an idea of what's going on, USA TODAY sent seven reporters and four video photographers out across the country to talk to small-business people.

Here's some of what we found:

IN CALIFORNIA

(All numbers are for August.)

Unemployment:7.7%

Number of small businesses:3.7 million

Home foreclosures:101,724

•A barber cuts shorter.

These days, some men go into Carlos Vinces' barbershop on Westwood Boulevard in Los Angeles and ask to have their hair cut extra short.

"Maybe for saving money," says Vinces. Short cuts mean they don't have to get their hair cut as often.

Last year, Vinces says some days he could earn $400 or $500. These days, the best days are closer to $200 to $300. He charges $22 for a basic cut.

Vinces says he may be forced to stay open longer. He's already working six days a week, closing only on Sunday. But he says he doesn't open until 11 a.m. and closes at 6 p.m.

Customers talk about their own issues. "A lot of customers told me they have a problem with the mortgage," he says. His own brother works two jobs and still has trouble paying the rent. But Vinces has his own problems. He has to commute 100 miles a day round trip to the San Gabriel Valley and pay for higher gas.

•An auto shop can't hire.

In Silicon Valley, a short drive from Google and Stanford University, auto-repair shop co-owner Danny Tran stares at the light street traffic and nearly empty sidewalks in downtown Mountain View. Typically, the area is bustling with diners and shoppers in the early evening.

During flush economic times, his GTS Auto Center is filled with a steady flow of customers. But since spring, sales have been down 20% to 30%.

"Everyone says the economy is bad, there are no jobs, they don't want to spend money on their cars," says Tran, a Vietnamese American who immigrated to San Francisco 20 years ago.

"I try, but it's hard."

•A yoga lover stays calm.

Tracy Columbus, 47, runs her own "lifestyle, branding and marketing" strategy business.

She says her business is doing fine. Her home value has held up, and she has invested conservatively. She says she has always lived within her means. But she's still worried about the effects of the meltdown.