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Three Main Street America Staff members standing in front of a mural in Marion, Iowa.

Marion, Iowa © Tasha Sams

About

We work in collaboration with thousands of local partners and grassroots leaders across the nation who share our commitment to advancing shared prosperity, creating resilient economies, and improving quality of life.

Overview Who We Are How We Work Partner Collaborations Our Supporters Our Team Job Opportunities Contact Us
Two community members in Emporia Kansas pose with a sign saying "I'm a Main Streeter"

Emporia, Kansas © Emporia Main Street

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Made up of small towns, mid-sized communities, and urban commercial districts, the thousands of organizations, individuals, volunteers, and local leaders that make up Main Street America™ represent the broad diversity that makes this country so unique.

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Dionne Baux and MSA partner working in Bronzeville, Chicago.

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Looking for strategies and tools to support you in your work? Delve into the Main Street Resource Center and explore a wide range of resources including our extensive Knowledge Hub, professional development opportunities, field service offerings, advocacy support, and more!

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Last year, the Main Street America Research team launched the Fall 2023 Small Business Survey. Beginning in early November, we sought out the perspectives and insights of small business owners across the U.S. We heard from 651 respondents, including 547 business owners in 35 states and the District of Columbia. We want to offer thanks to everyone for spreading the word about this survey, and we want to give a special shout out to Main Street staff and small business owners in North Carolina, Missouri, Wisconsin, Arkansas, and Georgia, where we had the highest counts of completed surveys.

We are excited to share the results of the survey, including persistent small business confidence, the importance of place and relationships, facts about who owns small businesses on Main Streets, and ways that the Main Street Movement can support small business owners.

Small Business Confidence Persists, Despite Talk of Recession

Despite headlines about the possibility of a looming recession, we were happy to see that small business owners in Main Street communities continue to have a high degree of confidence in the future success of their businesses. Consistent with our Fall 2022 and Spring 2023 surveys, we asked the question, “As you think about the next three months, how confident are you that your business will perform successfully?”

The results in the current survey matched those from Spring 2023, which were an improvement on those from Fall 2022. The average confidence level was reported as a 7.7 on a ten-point scale, where ten equals extreme confidence. As with the last survey, 61 percent of respondents reported a confidence of 8 out of 10 or higher. For comparison, the Fall 2022 survey results showed an average confidence score of 7.6, and 59 percent indicated a confidence of 8 out of 10 at that time.

Place Matters in Successful Economic Development

We believe that Main Streets are at their most potent and economically vital when business ideas come from the local community. In our August 2020 small business survey, we learned that 71 percent of local businesses were started by individuals residing in the communities where the business is located.

In the Fall 2023 survey, we wanted to revisit that question and learn more about the roots of entrepreneurs and the places they launch businesses. The new survey results indicate that more than 80 percent of small business owners live in the communities where their businesses are located, and that only 15 percent of respondents indicated that they live somewhere away from the place the business is located.

Other interesting findings related to place include:

  • 37 percent of business owners indicated that they moved to their city and lived there for a while before deciding to launch a business
  • 23 percent of business owners own businesses where they were raised and have lived their entire lives
  • 13 percent of business owners are “boomerangs”—entrepreneurs who moved away from the place they were raised before returning to start their businesses
  • 9 percent of business owners moved from elsewhere to start their business in a community 

These findings suggest that a sense of community plays an important role in where people start businesses. People like to open businesses in places where they have roots, history, and a network of support.

Local Relationships are Important to Business Success

We were curious to better understand the degree to which relationships with other local business owners and organizations are a factor to small business’s success. Nearly two thirds of all small business owner respondents said relationships with other business owners were either extremely important (32%) or very important (32%) to their business's success.

Meanwhile, more than half of respondents indicated that relationships with Main Street organizations, chambers of commerce, and other business-serving organizations were either extremely important (26%) or very important (28%) to their business's success.

These findings further illustrate the importance of communities of support for small business owners. We note an opportunity for growth in the findings as well: 7 percent of respondents said they don’t currently have a relationship with a Main Street program, a chamber, or a business-serving organization, but that they would like to.

Other findings that focus on the statuses and backstories of the business include:

  • Most small business owner respondents indicated that they had started their business by themselves (53%) and that they rent their current location (55%).
  • Nearly 4 in 5 small business owner respondents said their businesses were either growing and expanding (38%) or mature and steady (41%).
  • Most businesses represented in the survey are generating profit (55%) and about a quarter are currently breaking even (24%). Sixteen percent are currently operating at a loss. 

Who Owns Small Businesses on Main Street?

In Main Street America’s surveys, we consistently ask respondents about their race, ethnicity, age, gender, and other identifying characteristics, which allows us to attribute and interpret data in meaningful ways. We strive to hear from respondents who represent the diversity of their locale as well as the broader population, which helps us demonstrate the validity of our findings and supports our aim to engage communities in their entirety. The chart to the right shows where rates of business owner respondents to this survey align or diverge from national small business ownership statistics and from U.S. population characteristics.

Small business owner respondents to this survey are roughly representative of small business owners across the U.S. (within a few percentage points), in the proportions of older people, veterans, people with disabilities, and LGBTQIA+ populations. Compared to U.S. small business ownership rates, we see higher proportions of Main Street small business owner respondents who are age 35-64, women, and White. In contrast, compared to U.S. small business owners as a whole, we see fewer Main Street small business owner respondents who are age 18-35, Hispanic or Latino, Black or African American, Asian, or born outside the U.S. The disparities of respondents who are Asian or born outside the U.S. are especially pronounced.

How Main Street Helps Small Businesses and Ways the Network Can Be More Helpful in the Future

We heard from small business owners that Main Street organizations help them in a variety of ways. More than a third of respondents indicated that the Main Street network:

  • Provides helpful opportunities to connect with other local business owners (42%)
  • Fosters a livelier commercial district with more customer activity (38%)
  • Supports with the marketing of local businesses (33%).

There is another clear opportunity for growth in these findings: 22 percent of respondents said they didn’t know what the Main Street network is or had no association with Main Street.

We also asked what single type of support small business owners would like to receive from the Main Street network in the future. 31 percent indicated they would like insights on best practices or new solutions for small businesses. One quarter of all respondents indicated they would like support with advocacy for changes to public policy related to small business challenges, and 15 percent indicated they’d like insights on best practices or new solutions to community challenges that are impacting businesses, such as housing, workforce development, childcare, and homelessness. 

Takeaways and Conclusions

Our Fall 2023 small business survey clearly highlights some of the strengths of Main Street communities and the Main Street Approach: The confidence of entrepreneurs who know their communities well because they live there, and the liveliness, vitality, and organizational robustness that foster a collective sense of districts’ progress and purpose.

But there are, too, clear areas where the Main Street Movement can grow and improve. Some business owners expressed a sense of disconnection with their local Main Street program that could be remedied with greater attention and relationship building. At least in this survey, we heard from very few Asian business owners and business owners who were born outside of the United States. We need to better understand whether this is a challenge of outreach, representation in Main Streets, or both. Finally, we hear calls for new resources focused on best practices and new solutions for small businesses, advocacy for changes to public policies to support small businesses, and assistance identifying solutions and best practices related to community concerns around homelessness, childcare, and housing. We will give these calls careful attention in the years ahead and encourage local Main Street leaders to consider incorporating these findings into their work plans for 2024 and beyond.

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