A Personal Dedication to Help the Little Guy

As time progresses, it seems that the number of small, locally owned businesses continues to decrease. It's almost as if there is no stopping ever larger chains from completely dominating the economic scene. The pandemic has only made this situation worse, as the better capitalized chains are more likely to survive, and even continue to prosper, during this economic downturn because of their ability to access the capital markets and because of pre-existing reserves.

But money certainly isn’t the only reason local businesses have problems competing. The chains were once small local businesses, too. So, what other factors come into play?

This is a topic that I think about a lot as I drive around Hampton Roads, Virginia. In addition, I can’t help but notice that there is a distinct difference in the vibrancy of the small business scene as you move from city to city in this region, and between the different neighborhoods. Location, location, location, right? But is that all there is to it?

And if you’re a stakeholder of a small business, you need to know the answers to these questions to make the right decisions. That’s true whether you’re an owner, investor, manager, or employee. Even customers, neighbors, and government officials should be interested in these answers. As a business advisor, I need to be able provide some insight to my clients that they can find useful. Even if I can’t make every business a guaranteed success, I should at least be able to help my clients identify the path that will give them the best shot.

This is a trend that has powerful consequences for local economies, including the distribution of wealth and the prosperity of the community itself. I believe it has an impact on the career and location decisions that our citizens make, especially the younger generation. An economy with a more diverse economy with lots of startup activity probably has a better chance of keeping a larger percentage of their young in the community, instead of seeing them leave for greener pastures somewhere else.

I’ve decided to make this an area of study for myself. I’m going to embark on a mission to investigate what makes small and local businesses independently sustainable. I’m going to learn as much as I can through observation, reading, talking with stakeholders, and analyzing the information I gather. Then I will share it by writing blog posts, articles, and incorporating it into my advisory practice and classroom teaching. If I crack the code, maybe there’s even a book in it.

Here are a couple of things I should state up front. First, I’m not talking about the government definition of small business, which is much larger than most lay people would mean. The focus of my work will be on what are now becoming known as “micro-business”. But it’s entirely possible my work crosses a line somewhere or has application to larger businesses, as well.

Second, since I’m writing this post, I have obviously decided to start writing before I have it all figured out. I plan for this to be a living and growing body of work for me. I will write things as they come to my mind and not wait for a “final product”. I think the ad hoc dissemination of my learning will be helpful to others and motivate me to stay productive. If someone is reading, then I’ll probably write more.

So, if you are reading this, I encourage you to post your comments. Let’s make this a community effort where we can learn from each other!

James | 11/08/2020

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A Personal Dedication to Help the Little Guy