Main Street Business Insights: Scaling with Purpose
In this episode of Main Street Business Insights, Matt sat down with Mindy Bergstrom, owner of Cooks Emporium, Nook & Nest, Z.W. Mercantile, and The Recipe, all located in downtown Ames, Iowa.
The Dalles, Oregon © Alicia Gallo
In late spring, the Main Street America Research team launched the latest in our series of small business surveys. We heard from 996 small business owners in 46 states plus Washington, D.C. (A big thankful shoutout to North Carolina, Virginia, Georgia, Indiana, Texas, and Oregon for rallying their small business owners.) As is normally the case with our surveys, we heard from very small businesses: 40 percent of all businesses represented here have only one full-time employee, and more than three-quarters have fewer than 5 full-time employees. Retail and food and beverage businesses represent 62 percent of the sample, and professional and personal services represent another 14 percent of respondents.
These surveys have shown us that the pandemic didn’t slow down Main Street entrepreneurship, as nearly 30 percent of respondents represented businesses that had launched since 2020. At the same time, we continue to hear from longstanding local businesses as well. Forty-two percent of respondents had been in business for ten years or more, and about 1 in 8 respondents represented a business that had been operating for 30+ years.
Main Street is a Network of Manufacturers and Makers
We have long been keen to understand — and excited to celebrate — small-scale manufacturing efforts on Main Street. In this survey, we sought to understand just how common Main Street makers really are. According to the data, approximately one-third of all Main Street businesses indicated that they manufacture a unique product, sold either direct to the consumer or through another business. In our downtowns and neighborhoods, folks are producing custom jewelry and apparel, baked goods, beer, bath and skincare products, roasted coffee, candles, art, and other goods.
Main Streets manufacture many products locally, including food, beauty and skincare, art, and more. © Main Street America
Currently, our best estimate indicates there are about 175,000 businesses in Main Street districts throughout the network. Based on the data in this survey, that suggests there are between 55,000 and 60,000 makers and small-scale manufacturers in Main Streets across the U.S.
Small Business Confidence Falls Slightly
We have been monitoring small business owners’ confidence in their business success over the past four Small Business Surveys with this question: “As you think about the next three months, how confident are you that your business will perform successfully?” We ask business owners to answer with a number, where 0 indicates that they are “not at all confident” and a 10 indicates they are “extremely confident.”
The Main Street America Research team has monitored small business owners’ confidence in their business success since Fall 2022. © Main Street America
In the current survey, we see a slight dip relative to previous surveys. The average value from the Spring 2024 survey was 7.5, compared to 7.7 in Fall 2023 and Spring 2023, and 7.6 in Fall 2022. In the current survey, 52 percent of respondents indicated a confidence level of 8 or higher. In Fall 2023 and Spring 2023, 61 percent of respondents had that level of confidence, and in Fall 2022, 59 percent indicated an 8 or higher.
We suspect that the diminished confidence values may come from uncertainty due to a variety of factors: the election, high interest rates, and continuing inflation impacting some segments of the economy. But there is also indication in the data that small businesses are facing real slowdowns. In the last two surveys, we asked whether small business owners generated profit, broke even, or operated at a loss over the previous 12 months. In the Spring 2024 survey, 42 percent of respondents had generated a profit and 21 percent operated at a loss. In comparison, in Fall 2023, 51 percent had generated a profit and 15 percent had operated at a loss. This is a trend we will continue to monitor in future surveys.
Small Business Owners Seek Support from Main Street in 2024
Small business support is an important goal for many Main Street organizations. As we conduct these surveys, we periodically ask what types of support would be of greatest interest to business owners.
In the Spring 2024 survey, grant opportunities were the top choice, with 75 percent of all respondents expressing interest. Fifty-nine percent indicated that they would be interested in appearing on a national map and directory of Main Street businesses. Forty-four percent, meanwhile, expressed interest in learning more about the emerging best practices of other small business owners, and 36 percent were interested in either technical assistance with promoting their businesses online or joining an online network of small business owners for peer-to-peer support.
Respondents express an interest in grant opportunities, inclusion on a national directory of Main Street businesses, and learning about emerging best practices. © Main Street America
Interestingly, we see some disparate levels of interest in support for selling products on an e‑commerce platform for Main Street businesses, depending on whether the business owner respondent produces their own goods and products. Thirty-one percent of makers and manufacturers said they would like help selling their goods in this way, compared to 13 percent of business owners who do not produce their own wares.
Small Capital Investments Would Make a Big Difference
Main Street leaders who regularly engage with small businesses and think about economic vitality would likely agree that capital investment is an enormous barrier and a critical challenge for small business owners. In this survey, we asked, “If you could access affordable capital to grow your business, how much would you need?”
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Over 80 percent of small business respondents need less than $25,000 in affordable capital to grow their businesses. © Main Street America
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Small business owners report needing capital to invest in operations and physical improvements to business spaces. © Main Street America
Seventy-two percent of respondents indicated a need for capital. But of those who expressed this need, 27 percent indicated an amount less than $10,000, and 59 percent indicated they would need less than $25,000. On a subsequent question, 56 percent of respondents indicated an interest in using that capital to invest in inventory, equipment, machinery, and raw materials, and nearly half (46%) said they would use the capital to invest in physical improvements to their business’s physical space.
It is sometimes easy to assume that the amount of investment that small businesses seek is huge. This data indicates that Main Street businesses are not looking for bank financing or anchor investments in businesses. Local Main Street organizations could likely provide a substantial boost to local businesses by raising small amounts of capital to give away in support of their local entrepreneurs. Crowdfunding campaigns, pitch competitions, and entrepreneurial ecosystem building could all make a difference in supporting small businesses with small investments.
Conclusions
The results of the Spring 2024 Small Business Survey suggest that Main Street leaders can effectively support business owners in their districts in multiple important ways, whether financially through targeted small grants or loans, or via marketing channels by promoting businesses on local directories or broader Main Street maps. Recognizing the prevalence of local “makers” selling distinctive goods can be tied into district branding or Main Street-wide marketing efforts. The tick down in business owner confidence, however, is something we need to monitor.
We are grateful to the Main Street Network for helping us reach out to entrepreneurs across the U.S. with our small business surveys. We are eager to support local Main Street programs and local businesses in new ways, and these surveys are instrumental in helping us make the case for new grant programs, new tools, and new partnerships to strengthen local economies and thriving districts.
We encourage you to follow our social media accounts and keep an eye on our email newsletters to hear about upcoming small business surveys that will help us monitor trends and deepen our understanding of the needs within the Main Street Network. You can subscribe to receive updates here >
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Tema destacado: 10 predicciones para 2022
Chief Program Officer Matt Wagner, Ph.D., shares his predictions for the trends affecting small businesses in 2022.
Consejos y trucos para que el Small Business Saturday sea un éxito en 2021
Is your Main Street ready for the biggest small business shopping day of the year?
La comunidad en el punto de mira: El concurso de decoración comercial"WonderFall" ilumina de otoño los negocios locales
Main Street Charles City organizes their annual 'WonderFall' event, a business decorating contest designed to have some fun with the autumnal season as well as provide a reminder of the importance of curb appeal in attracting the public’s attention.
Charles City, IA © Mark Wicks
Primer plano: Serie "Mejor planificación comunitaria y desarrollo económico" con Ed McMahon
Leverage NC, a partnership between North Carolina Main Street and the North Carolina League of Municipalities, hosted a four-part webinar series titled Better Community Planning & Economic Development led by Ed McMahon, Chair Emeritus of Main Street America and a leading national authority on land use policy and economic development.
La comunidad en el punto de mira: La Ruta del Café de Main Street Arkansas celebra la importancia de las cafeterías del centro de la ciudad
Main Street Arkansas has brewed a new engaging way for tourists and residents alike to explore local Arkansas commercial districts: the Main Street Arkansas Coffee Trail.
Little Rock, AR © Main Street Arkansas
Enfoque principal: Más allá del COVID: la mano de obra como próximo gran reto para las calles principales
Matt Wagner explores how Main Streets can navigate workforce concerns in the post-pandemic economy.
Mes Nacional de la Empresa Negra: The Four Way y L. May Creations
We spoke with two Black entrepreneurs in UrbanMain commercial districts: L. May Creations in the Austin neighborhood of Chicago and The Four Way in south Memphis, Tennessee.
Memphis, TN © Four Way
Enfoque principal: Apoyo a las empresas propiedad de negros en Biddeford, Maine
Heart of Biddeford shares the strategies they developed to support Black-owned businesses in their community.
Biddeford, ME © Corazón de Biddeford
La comunidad en el punto de mira: Las calles principales adoran los mercados agrícolas
We heard from organizations across the nation about the incredible impact their markets have had on community engagement, entrepreneur and small business support, and keeping their district vibrant.
Hopewell, NM © Hopewell Downtown Partnership
Main Street: Un lugar para una economía más conectada en un mundo de dispersión
The global pandemic gave us all a glimpse of a further dispersed future – a time when you don’t sit in a classroom at school, watch movies in a theater, or even go to the grocery store. Where do Main Streets fit in that model?
Primer plano: Acostúmbrese: el pivote no va a desaparecer
The COVID-19 pandemic has long-lasting effects on the economy. Here are 11 changes that small business owners should continue to remain competitive.
Reflexiones sobre la historia, el legado y el futuro del Wall Street negro en Tulsa
This May marked the 100th anniversary of the Tulsa Race Massacre in the Greenwood neighborhood of Tulsa, Oklahoma. We explored the impact and legacy of this tragic event.
Tulsa, OK © Dr. Tiffany Crutcher
Destacado principal: Creación de una comunidad empresarial integradora en Fremont, California
Learn about the various programs and initiatives that Fremont is using to promote inclusive economic development.
Fremont, CA © Fremont Economic Development
Para una recuperación integradora, necesitamos apoyo para las pequeñas empresas y los grupos que las ayudan
BDOs are place-based organizations that help small businesses and entrepreneurs to flourish. They have been on the frontline of support for the country’s hardest-hit entrepreneurs throughout the pandemic and have been working to enable thriving commercial corridors throughout the crisis.
Destacado principal: Cinco consejos del Dr. Matthew Wagner para apoyar el espíritu empresarial
Matthew Wagner, Ph.D., Chief Program Officer at Main Street America, was featured on Breaking Down Barriers: a podcast from Startup Space highlighting stories of community leaders who break down barriers to entry for underserved and unrepresented entrepreneurs.
Foco principal: Ventanas de oportunidad - La transformación de los escaparates vacíos de Main Street
A vacant storefront is the perfect stage to creatively promote the available space or to showcase other businesses and events in the area.
El uso del comercio electrónico por parte de las pequeñas empresas sigue aumentando, mientras que los ingresos navideños fueron desiguales: Resultados de nuestra encuesta de enero de 2021 a propietarios de pequeñas empresas
We heard from 289 business owners in 35 states plus the District of Columbia in our new text message-based survey of small business owners across the network.
La comunidad en el punto de mira: Las tiendas del paseo marítimo de Batavia pasan de ser emergentes a permanentes
The Batavia Boardwalk Shops are freestanding, purpose-built structures acting as seasonal pop-up locations for entrepreneurs, offered in tandem with a business incubator program.
Batavia, IL © April Duda Photography
La empresa en el punto de mira: Empresarios negros que dan ejemplo en Chicago
For Black History Month, we want to recognize and celebrate the Black business owners and entrepreneurs who have overcome challenges and obstacles in launching and running their own businesses, thanks to resilience, creativity, and hard work.
Destacado principal: Pop-Up Retail: No sólo para nuevas empresas, y otras lecciones de su evolución
As a vital place factor within an entrepreneurship ecosystem, pop-up programs allow for emerging businesses to test their product, gain consumer feedback, and promote their brand at an extremely low cost. In essence, allowing for a ‘fail-fast’ product development cycle.
Asheville, NC © Ablohkin
Cómo afrontar la crisis del COVID en medio de la fiebre navideña: nueve conclusiones de nuestras encuestas de diciembre a propietarios de pequeñas empresas y programas de Main Street
In early December, as the COVID-19 crisis intersected with a peak moment in the holiday shopping season, we surveyed small business owners and Main Street programs to learn more about how they were managing.
© Cindy Shebley
Bájese del tren de la contratación de empresas: Los verdaderos beneficios están en cultivar el espíritu empresarial local
New research by Main Street America suggests greater returns on our missions and resources can be had by transitioning to more deliberate economic vitality work centered on cultivating new business development from within our own communities and neighborhoods.
La comunidad en el punto de mira: Activación de escaparates mediante la narración de cuentos en Fredericksburg, VA
Fredericksburg Virginia Main Street (FVMS) is taking storefront activation to a new level with their new initiative, the Scan & Love Project, which tells the stories of business owners through personal and engaging videos.
Fredericksburg, VA © Dan Craddock, Metro Nova Creative
Programa de subvenciones HartBeat of Main Street: Los hilos intemporales de Tina en el punto de mira
Meet a recipient of the HartBeat of Main Street Grant Program
Programa de subvenciones HartBeat of Main Street: Centro del Hilo
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat del Programa de Subvenciones Main Street: The Bankery en el punto de mira
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat del Programa de Subvenciones Main Street: BuzzBomb Brewing en el punto de mira
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat del Programa de Subvenciones Main Street: The Owl Wine Bar & Home Goods en el punto de mira
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat del Programa de Subvenciones Main Street: Destacando Griff Goods
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat del Programa de Subvenciones Main Street: Mockingbird Bar and Tacos en el punto de mira
Meet a recipient of the HartBeat of Main Street Grant Program
La jardinería económica echa raíces: Rediseño del programa de retención empresarial Bricks & Clicks durante la pandemia
Harrisonburg Downtown Renaissance explores how they redesigned their Bricks & Clicks Business Retention Program during the pandemic.
Empresas destacadas: Empresas de mujeres en Main Street (Parte 3)
Meet some amazing women business owners!
Impacto local: Sábado del Pequeño Comercio
Small Business Saturday® is more than a day to shop. It’s a nationwide movement that shines a spotlight on the importance of supporting small businesses in communities across America.
Comunidad destacada: Benson, Carolina del Norte
The Town of Benson started a special project to highlight their downtown businesses.
Comunidad destacada: Berkley, Michigan
The Berkley Downtown Development Authority (DDA) proudly debuted its Downtown Berkley Shopping Bag for a Cause through a partnership between Better Life Bags.
Primer plano: Conclusiones de la Cumbre ESHIP
Supporting new and existing small businesses, and the entrepreneurs who run them, represents a vital aspect of the revitalization of downtowns and neighborhood business districts.
Crear ciudades equitativas, inclusivas y transparentes: Resumen del año
The Equitable Economic Development Fellowship is a two-year, one million-dollar effort funded by the Surdna Foundation and the Open Society Foundations to help equity, transparency, sustainability and community engagement become driving forces in local economic development efforts.
La comunidad en el punto de mira: Se ofrecen minibecas a las pequeñas empresas de Jefferson, Iowa
The Jefferson Rotary Club partnered with Jefferson Matters: Main Street to offer mini-grants for building facades and storefront signage to two dozen businesses for up to $500 each.
Un cambio de imagen memorable en Main Street
The Wisconsin Economic Development Corporation (WEDC) partnered with Retailworks, Inc., a commercial interior design, display and branding firm headquartered in Milwaukee, to launch Wisconsin’s Main Street Makeover Contest.
Descubrimiento creativo en la Ruta de los Creadores de Enid (Oklahoma)
Kelly Tompkins of Main Street Enid shares more about the Maker Trail project and how it inspired creativity and helped people discover downtown.
Las aceras de la ciudad se visten de fiesta
Too often, as we’re strolling our favorite Main Street, we pass empty or dark shop windows that make us want to hurry home a little bit faster. Imagine instead, a charming streetscape adorned with vibrant, lively window displays, showcasing retailers’ favorite products and seasonal gift ideas.
La comunidad en el punto de mira: #ShopSmall en Goldsboro, Carolina del Norte
Small Business Saturday promo pic from Downtown Goldsboro, North Carolina, showing all the folks who took the pledge support a small business in their community.
Cómo utilizar las tendencias de búsqueda local para atraer más clientes a su calle principal
We’ve put together a practical list of some of the things that local store owners can do right now to help them capitalize on this increasing trend in local searches.
La red en el punto de mira: Semana de los Restaurantes de Main Street Iowa
From authentic comfort food to farm-to-fork fresh and everything in between, these restaurants, bars, and cafes are key to the thriving social, business, and residential life in the historic commercial districts in Main Street Iowa communities.
El Fab Lab genera oportunidades rurales
Located in southeast Kansas, Independence (pop.8,799) is home to Fab Lab ICC, which is on track to be the world’s leading innovator in combining entrepreneurial mindset education with a fab lab maker space.
Comunidad destacada: Morganton, Carolina del Norte
The craft beer industry is playing a key role in the rebirth of Main Streets and neighborhood commercial districts across the county.
Repensar la accesibilidad de los escaparates para repensar la viabilidad de la comunidad
Appealing to mobility-challenged shoppers yields benefits beyond the store.
Desencadenar un movimiento en las pequeñas empresas y ciudades
Being the only person in the know can be fun, exhilarating even. Except when you are the one person out of 600+ in a room and you know bad news is coming.
Lo más bajo en el centro de LaBelle
Fritz the dog has made his way into the hearts of the residents of LaBelle, Florida, and helped our Main Street Community find a way to make what we do more noticeable.
Altavista emergente 2.0
Altavista On Track, the local Main Street organization, is working to cultivate and sustain local entrepreneurs with an educational business launch competition, Pop-Up Altavista 2.0.
El Bright Center: Un espacio para que las mentes brillantes de Winchester creen, innoven y prosperen
In Winchester, Virginia, one woman’s vision and commitment to downtown’s revitalization created an innovative community space for the Creative Class.
Por qué los planes de retención y expansión empresarial son importantes para los centros urbanos
Un plan de retención y expansión empresarial, aplicado correctamente, no sólo ayuda a mantener abiertas las empresas, sino que posiblemente incluso les ayude a expandirse.
Guías de inversión empresarial: "Piensa en B.I.G."
La primera regla para hacer negocios es "hazlo sencillo". Cuanto más fácil sea pagar una mercancía, entretenerse u obtener un servicio, más probable será que la gente aproveche esas opciones.
Small Box - Un proyecto creativo de venta al por menor
Las comunidades de Main Street de todo el país no son ajenas a la búsqueda de estrategias creativas para resolver sus problemas más acuciantes: edificios vacíos, comercialización del centro, refuerzo del comercio minorista, por nombrar algunos.
Apoyo a los empresarios inmigrantes en el corazón de las calles principales de Boston
Para comprender el papel que desempeñan los empresarios inmigrantes en el ecosistema de la pequeña empresa de Boston, basta con pasear por cualquier distrito de Boston Main Streets.
Medición del impacto económico de las mejoras en los escaparates
La apariencia de las fachadas es un aspecto crítico del atractivo estético general y del carácter único del centro de la ciudad.
Directrices para el diseño de carteles
Para que un centro de ciudad funcione bien hacen falta muchos carteles, pero no todas las comunidades saben cómo es un buen sistema de señalización ni lo decisivo que puede ser para crear un centro de ciudad de éxito.
Mejorar el rendimiento de las comunidades de Main Street Iowa
Main Street Iowa, un programa del Iowa Downtown Resource Center de la Iowa Economic Development Authority, creó un programa único de tres años de duración para ayudar a los locales de espectáculos situados en los distritos de Main Street.
