Small business runs state

SBA study shows ‘mom and pop shops’ on the rise

By Jessica Legge

FAIRMONT — The 2007 West Virginia Small Business Profile shows that “small businesses are the heart of West Virginia’s economy.”

The Office of Advocacy, an independent office within the U.S. Small Business Administration, released small business profiles for each state and the nation on Oct. 25. The office updates these profiles every year with the latest available information.

“We collect the data from various resources,” John McDowell, press secretary for the Office of Advocacy, said. “We sort of pull it all together from all parts of the government and present it to people.”

He said the Office of Advocacy is the source of federal government research on small business statistics, economics and issues. The entity releases 20 to 25 research reports a year, and also works on regulatory issues on behalf of small business and the federal government.

The updated West Virginia Small Business Profile illustrates the increased impact of small business on the state. According to the report, West Virginia had an estimated 125,300 small businesses in 2006. Between 2003 and 2004, West Virginia gained 10,100 net new jobs through small firms.

“Research by the Office of Advocacy shows that small businesses create most of the nation’s net new jobs, and they bring dynamic ideas, innovative services, and new products to the marketplace,” the profile said.

The SBA’s West Virginia District Office in Clarksburg has seen a considerable increase in SBA-backed funding in the last five years and knew small businesses were growing, said Rick Haney, public information officer. However, the district office didn’t realize small business was creating so many jobs in West Virginia.

Findings from previous years showed that small business was somewhat stagnant in the state, but the updated statistics display more of an increase, Haney said.

“It looks like small businesses are alive and well and growing in West Virginia,” he said. “You can’t go anywhere without running into a small business.”

Haney said small businesses make up the majority of businesses in West Virginia. According to SBA standards, 97 percent of all businesses in the state are small.

Data showed that last year 96.7 percent of the state’s 36,800 employer firms were small businesses. Also in 2006, West Virginia saw the creation of approximately 3,823 new employer firms.

Small businesses employed more than half of West Virginia’s non-farm private workforce in 2004. In 2002, the state had 31,300 women-owned businesses, which was 27.7 percent of the state’s total number of businesses.

“Women firms have been steadily growing and are still showing a steady increase overall,” Haney said. “There are a lot more women going into business now.”

Across the country, states are showing a little growth in small business, he said. Because of its rural nature, West Virginia has fewer small businesses compared to neighboring states.

The United States was created on the idea of free enterprise, and small business runs the country and the state, Haney said.

“Small businesses — they’re the innovators, they’re the creators,” he said. “They come up with a lot of the inventions you see. They employ a lot of the workforce in the state of West Virginia.”

Terri Cutright, executive director of Main Street Morgantown, said the organization has about 200 business members, and approximately 85 to 90 percent are small businesses. These small businesses are vital to Morgantown because of the jobs they create, she said.

“Small business is important because of the circulation of the dollars and the support,” she said. “A lot of community programs are supported by small businesses, particularly a lot of our charitable projects and arts initiatives.”

Main Street Morgantown helps small businesses in various ways. The organization offers business counseling and can refer persons to the WVU Small Business Development Center and area banks. Using a national listserve and the national Main Street files, Main Street Morgantown can provide information and resources for persons needing assistance. Grants are also available, and Main Street Morgantown tries to generate public relations for new businesses.

Cutright said Morgantown’s downtown provides a built-in market with people working, living and shopping there.

“A downtown is an incubator for small businesses,” she said. “Downtowns are just that ideal location for small business people.”

During her 18 years doing this work, Cutright has seen many individuals visit Main Street Morgantown who were interested in locating new businesses near the downtown area. She’s always willing to help these potential small businesses.

“Some of those people have been able to let those dreams become their reality,” Cutright said.

Main Street Fairmont has more than 100 members, which are mostly small businesses, program manager Vera Sansalone said.

“They’re local dollars and it all stays local, which is great for our local economy,” she said of these small businesses. “What money is spent here stays here (and) gets recycled back into our local economy.”

Sansalone said Fairmont wants small business owners with unique shops and ideas in the downtown area. These stores, with their amenities and service, make downtowns attractive and add a personal touch.

“Basically, downtowns were founded on small business,” she said. “We started out years ago with mom and pop shops opening up and servicing the community, and I think that is still what we want to do.”

To support small businesses, Main Street Fairmont offers business owners a grant program for new signs and facade improvements. It also helps promote low-interest loans through local banks.

Rana Taylor, program manager for Mannington Main Street, said people can find pretty much anything they need in the town’s stores. Mannington Main Street works to support these businesses.

“Because of the demographics, we don’t get too many corporations in this area,” she said. “It takes the mom and pop shops to keep the town running.”

Most of Mannington Main Street’s 20 members are small businesses. Taylor said Mannington’s small downtown businesses contribute to the community’s economic development, and the downtown doesn’t have much business space left.

“It just paints a picture for the overall community as a whole,” she said of Mannington’s downtown area. “They’re basically the heart of the town.”

Mannington Main Street holds ribbon-cutting ceremonies to give new businesses exposure, and also offers a facade grant for businesses. New business owners can apply for assistance from a business enhancement team of experts in their field, which can provide them with the tools to get started. A Main Street West Virginia basic design application is also available so owners can receive help enhancing their businesses.

State and national data from the Office of Advocacy is available at www.sba.gov/ advo/research/profiles.

E-mail Jessica Legge at jlegge@timeswv.com.

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