Supporting Your Small Business Ecosystem in a Downturn - A Three Part Series

Part 1 : Leading From The Front

In an economic downturn, small businesses hurt the most. According to JP Morgan Chase, most small businesses have on average 27 days of cash on hand, which is not enough money when they have unexpected expenses or loss of revenue. And borrowing money is harder for businesses of color, and other minority owned businesses. According to the American Express?State of Women-Owned Businesses, women own 49 percent?of the businesses in the U.S., but account for less than 10 percent?of the country’s earned revenue.?

This is where you can help. Economic developers play an important role in helping small businesses survive and make it through challenging times like the impending downturn. Creating resiliency and strong foundational elements of small business ecosystem can take decades but here are some simple steps that economic developers can take to create change today.

1. Show up: Sometimes, showing up can be the best way to support a small business. Show up to small business gatherings like 1 Million Cups or other events around town where small businesses come together to share their successes and challenges.
2. Be a Super Connector: Ecosystem Builders have an incredible rolodex that small businesses could benefit from. Be generous with your super connector super power. Very often, small businesses find it challenging to navigate the resources available to them in their communities. You can help simplify access, break down barriers and make connections that can be the game changer for your small businesses. If you need a digital navigation resource, Startup Space App can help.
3. Tell Stories: This is the best kept secret in town, don't let it be that. Tell the stories of businesses you work with. Tell stories of wins and losses, because story telling is the best way to learn and teach. It also inspires and motivate small businesses to keep going. It also provides free publicity for your small businesses and can generate new customers, help secure funding and create a support network for your small businesses.
4. Be Intentional: Not all small businesses start at the same starting line. And not all small businesses have an even playing field. You have to acknowledge that and be intentional about who you serve and how you serve. You can provide the same level or type of service to all your small businesses. You need to create intentional pathways for your businesses to be able to compete and win fairly. You will need to level the playing field so all your small businesses can win at the end of the day.

In time of crisis, leader are made. As an economic developer, you have the mandate to lead and guide your small business community. Your entrepreneurs are counting on you to help them make it through the downturn and become thriving businesses. Your work will help break down generational poverty and create wealth for your community. Thank you for taking on that challenge.

You can learn more about our work here: https://economicimpactcatalyst.com/