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Small businesses are a critically important component of the region’s economy.  Statewide, micro-businesses (<4 employees) and sole proprietors together comprise 86% of all business establishments; employ 30% of non-government workers; and were responsible for 30% of net new jobs from 1994 – 2004.  Although many economic development plans and programs fail to address the significance or needs of very small businesses, the impact of these enterprises will continue to grow in coming decades.  In many sectors, the nature of professional work is changing, from a growth-oriented corporate culture to a network of contractors and opportunistic alliances.  In this new paradigm, economic growth is realized through the multiplication of many small enterprises, not the expansion of a limited number of firms.  Business consulting, information technology, arts and culture, and design are all examples of sectors where entrepreneurs can be successful on a small scale with very limited capital needs.  Many entrepreneurs in these fields may eschew the increased overhead, rent, and capital costs that accompany growth in favor of informal partnerships with other small businesses, tailored to specific opportunities.  

MetroFuture supports the growth of small businesses in a variety of ways.  The land use plan emphasizing development in city and town centers will yield office and retail spaces more conducive to small businesses than are conventional office parks and commercial strips.  Town and village centers also offer greater opportunities for the networking and collaboration that small businesses thrive on, so long as the zoning is supportive.  Economic development policies and programs can also help to support small businesses; first by acknowledging their significance and addressing their needs, such as technical assistance in a variety of areas: business planning, cash flow, marketing, and law.  Like every enterprise, small businesses also need access to capital, though often in smaller amounts than larger companies; new models of lending and new sources of capital are critical to ensure that these businesses can thrive.  More streamlined procedures for international transactions will help the many small enterprises that do business overseas, especially immigrant and transnational entrepreneurs, and small import/export operations.

8)    Develop economic development plans that support small businesses

9)    Facilitate access to capital for small businesses

10)    Expand access to appropriate technical assistance, business services, and training

11)    Support unconventional work locations: home offices, live/work spaces, and business incubators

12)    Provide financial services that operate smoothly in a transnational milieu