Supporting Small Businesses in Economic Development: Tips for Long-Term Success

Supporting Small Businesses in Economic Development: Tips for Long-Term Success Main Photo

13 Jan 2025


News, Business Attraction

Economic development organizations take a multi-track approach to sustained community growth. Supporting local small businesses is frequently a top priority for intracommunity growth, and its importance grows in economic downturns or times of crisis. There are several ways to champion these enterprises no matter the size of the program budget. New and established businesses are often best assisted with training programs and resources filling the gaps created by smaller staff sizes and limited finances. However, grant and loan programs remain an incredible tool for growth and can be deployed strategically to maximize results in specific geographical regions or industry sectors.

Elevate small businesses with training

While businesses with less than 100 employees are considered small, many local businesses make do with significantly fewer staff covering multiple bases an entire team may tackle in a larger enterprise. When one person is human resources, payroll, marketing, and more, obtaining essential training to maintain or grow a business becomes difficult. Providing easy-to-access local training targeting the latest developments in marketing, management, employee retention, or niche topics unique to your local economy helps small businesses stay competitive and learn new ways to compete locally, nationally, or globally. 

EDOs without the in-house resources to develop and host training can partner with local experts for seminars or host a one-day event bringing together multiple specialties to maximize time. Long-term partnerships with regional nonprofits or governmental agencies can create consistent access to resources for local businesses. For example, Small Business Development Centers created by the U.S. Small Business Administration (SBA)  may have employees willing to travel to your location for weekly or monthly events designed for established businesses or start-ups. Some EDOs, such as The West Central Economic Development Alliance in Sebeka, Minnesota, host satellite offices for SBDCs to create more opportunities in their local communities.

Boost local businesses with grant resources

Any EDO can assist local businesses competing for grants, even when local programs are not available. Compile an easy-to-reference list of state or federal grants businesses in your area may qualify for based on location, business type, or strategic goals. Grants.gov can serve as a starting point for isolating federal agencies offering grants most relevant to your region. Include grant programs local governments can obtain to support businesses, such as grants to augment workforce development or job creation.

Helping small businesses develop a funding stack for historic building preservation or manufacturing expansion can often push a project forward faster while momentum exists. In uncertain economic times, it’s prudent to secure grant dollars for the local community while they are available.

While simplifying access to state or federal grants is crucial for an EDO, developing in-community financial resources takes commitment to the next level. When grant funds are not available, research and advocate for relevant alternate options, such as tax abatement or exemption programs, tax rebates, or tax increment financing, to support local businesses. 

Offer assistance with small business loans

Small business loan assistance is a valuable service EDOs can offer adjacent to other initiatives. For example, training and seminars focused on business plan development provide companies with the business and financial statements required to apply for loans.

Many organizations and governmental agencies offering grants, such as the U.S. Department of Agriculture and SBA, are also the best resource for small business loan information. Research local banks and credit unions to determine which participate in government-backed loan guarantee programs for small business loans and compile any resources they share with borrowers. When researching loan programs to share with small businesses, consider unique situations your local community may encounter, such as tropical storms or floods, and catalog loan and grant programs designed for small business recovery, such as the SBA Disaster Loan.

Positioning small businesses for success through any economic climate or crisis is a significant accomplishment for EDOs. Golden Shovel Agency can help your organization develop a game plan for small business support. Contact us today to learn more.