Small business is states dynamo
Published 12:00 am Wednesday, October 31, 2007
By Sarah Light, staff writer
Small businesses in Minnesota created 24,500 net new jobs during 2004, according to the most recent data in Minnesota&8217;s small business profile released last week by the Office of Advocacy of the U.S. Small Business Administration.
&8220;Small businesses are Minnesota&8217;s job-creating dynamo,&8221; said Chad Moutray, chief economist with the Office of Advocacy, in a press release. &8220;They are the key to the state&8217;s ability to increase gross state product, personal income and total employment.&8221;
According to updated data and statistics on the state&8217;s small businesses, in 2006, the state had an estimated 504,000 small businesses, the report stated. Generally, this refers to businesses with 500 or fewer employees.
The organization also categorized employers down into two further levels: those with fewer than 500 employees and those with fewer than 20 employees.
It indicated that while the number of employers with 20 to 500 employees actually decreased, the number of employers with fewer than 20 employees increased across the state.
These small businesses &8220;create most of the nation&8217;s net new jobs, and they bring dynamic ideas, innovative services and new products to the marketplace,&8221; the report stated.
And in Freeborn County, the impact of small businesses is no different.
Randy Kehr, executive director with the Albert Lea-Freeborn County Chamber of Commerce, said two-thirds of the local Chamber membership is made up of businesses with fewer than 20 employees.
&8220;We notice the big ones, but the day-to-day economy of the community is supported by those businesses that are less than 20 employees &8212; that&8217;s evidenced by our membership,&8221; Kehr said. &8220;The lifeblood of the community is the small businesses.&8221;
He said while larger businesses are a great asset in attracting and generating interest to the community, small business growth is sometimes more substantial &8212; though maybe more hidden &8212; for the city.
Often this happens when a business already in the community expands.
Kehr said expansions were evident in all of the businesses nominated for Chamber Business of the Year. These employers had experienced some kind of growth during the last year, whether that was only by a few jobs or several.
&8220;We think the community is quietly growing in a way that isn&8217;t visible or extremely public, but that is very significant,&8221; Kehr said. &8220;I think if you check with some of our larger businesses too, they have added jobs during the last year too.&8221;
Kehr said if somebody wants to start a business, the Chamber first refers them to Albert Lea&8217;s Business Development Center, who can help the potential business owner write plans and get the business running.
Once in business, the Chamber offers these owners networking opportunities and other opportunities to tell the community about their business.
&8220;What we mostly provide is a vehicle to get the word out to the community,&8221; he said.
To view the Small Business Administration&8217;s full report, visit www.sba.gov/advo. All of the state small business profiles are available there.