Small Business a Big Deal for Daytona Beach Economy

In a 1925 speech to the American Society of Newspaper Editors, President Calvin Coolidge said “the chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing and prospering in the world.”

While that statement has been misquoted ever since, becoming the more familiar line, “The business of America is Business,” the sentiment still applies, especially when it comes to small business. As the nation celebrates Small Business Week, the role of American entrepreneurs and small-business owners has never been more important.

According to the U.S. Small Business Administration, 99.9% of American businesses are small business, defined as an independently owned and operated company with fewer than 500 employees. They are also a job creation engine, accounting for 63% of net new jobs since 1995, and generate a third of U.S. export value. Small businesses employ nearly 62 million Americans, nearly half of all private sector job

According to personal finance company WalletHub’s latest Small Business Survey, more than 60% of business owners responding are optimistic about opportunities for growth, at the same time more than half say they need more financing today than a year ago.

According to WalletHub editor John Kiernan, said while small-business owners are cautiously optimistic about the future, there are some concerns.

“Businesses just need a bit of help,” he said in the survey release. “Most business owners say they need more financing now than they did a year ago. The good news is that some great options are available.”

Nancy Keefer, president and CEO at the Daytona Regional Chamber of Commerce, said small businesses are vitally important.

“Small business continues to be the backbone of most economies,” she said. “Collectively, they represent the largest number of workers in any given community. Because they typically live and work in their area, they are often some of the biggest supporters of local causes.”

Keefer said while the small-business community is growing, business owners face challenges due the nature of the local economy.

 “We continue to see strong growth in new businesses and more diversification of businesses selecting our region as a place for their business investment,” she said. “However, being reliant on tourism as a major contributor to our economy, small businesses face the challenge of operating through peaks and valleys. This places stress on maintaining a workforce and meeting the demands of visitors and residents alike.”

Keefer said financing for small businesses can be difficult, as noted in the WalletHub survey.

“I believe that the Daytona Beach region is similar to most cities and states, where the cost of inflation and the uncertainty of public/governmental decisions impact their businesses,” she said. “Small businesses operate on such narrow margins, that any unplanned increases in the cost of business causes them to have to make decisions about how to finance their operations to get them through tough times. Small business owners often have a more difficult time passing on increased costs to their customers as they rely on repeat customers and strong word of mouth promotion of their product or service.”

Keefer said Small Business Week is a good time for people to remember how important small businesses are to the community.

“Just a reminder of how important it is to support local business,” she said. “While the convenience of online shopping is attractive, our local businesses with physical locations are the fabric of our community.  They contribute to our tax base, hire local workers, and often contribute to local charities and organizations. A dollar spent locally for goods and services circulates many times throughout the community helping contribute to a growing and successful economy.”