As we enter 2012, there is little question as to what looms largest in the minds of voters and elected officials: the economy. While large companies play an important part in this arena, it is entrepreneurs who are taking the risks to launch new ventures and expand operations, thus creating much-needed jobs. It is government’s role to lay the foundation needed for these businesses to succeed in order to accelerate economic recovery.
In recent years, many job-seekers have found that creating a job is just as viable an option as finding one. According to a Kauffman Foundation study, business startups have reached a 15-year high. In addition, small businesses added 60,000 jobs in October and another 55,000 in November.
Yet the value of small business is not limited to job creation. Dollar for dollar, small businesses have been shown to make greater contributions to stimulating the local economy than do larger chains. On average, 73 percent of revenue generated by locally-owned businesses remains in the local economy, compared with just 43 percent from non-locally owned businesses. These funds not only stimulate a variety of sectors from accounting to charitable donations, but also re-circulate within the local economy and thus help strengthen other area businesses.
These figures demonstrate the vital importance of government providing small business with the tools they need to stimulate economic activity. Here in Lancaster, one such example is our partnership with the College of the Canyons-based Small Business Development Center to deliver training to more than 150 small businesses.
Thanks to this partnership, we have also taken the SBDC’s offerings a step further to host a number of innovative programs for present and aspiring entrepreneurs. These include the “Winning Pitch,” which provided aspiring entrepreneurs with an opportunity to pitch their ideas to a panel of angel investors, as well as the widely popular Business Boot Camp and BLVD Holiday Retail Marketing programs. Entrepreneurs are also equipped with resources such as our “Tools for Business Success” website (www.lancaster.toolsforbusiness.info) and our “Entrepreneur’s Almanac.”
This entrepreneurial focus is also reflected in our downtown revitalization project. This effort has attracted 40 new businesses to the area, creating an estimated 800 permanent jobs. Once here, these businesses enjoy the benefits of joint marketing and training opportunities through a business improvement district, an influx of patrons drawn by a variety of city-sponsored events, and more.
To build on this success, Lancaster will soon launch the “Start Small” Business Incubator Program in conjunction with private partner InSite Development. Through this program, entrepreneurs will have the opportunity to start businesses on Lancaster Boulvevard in free-standing “casitas,” providing them with low overhead and desirable locations in the thriving downtown area to launch their new ventures.
These efforts to partner with small business have played a vital role in stimulating our local economy during tough economic times, and will continue to do so as the economy recovers. With a host of promising new businesses and economic indicators trending upwards, it’s positively clear that the future offers boundless possibilities for our region.
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