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No man left behind? That’s far from the truth when it comes to how small businesses are faring in the current U.S. economy. This week, we look at what operators say about the forces pushing them to the breaking point. We’ll also examine why Vancouver, Wash., is a case study for what to do right when it comes to supporting small businesses.
But before we get into it, watch Etsy’s cheeky campaign imploring you to buy from small business owners, not billionaires.
[ FIRST GLANCE ]
[ THE TOP LINE ]
Small businesses are getting squeezed
Even though macroeconomic trends point to a resilient U.S. economy, that’s not the reality for many small businesses. The owner of a Missouri remodeling company reports sales down 25% and says the economic headwinds have sapped the joy out of his job. A café owner in Houston said she paid $1,000 on shipping and customs fees for a $440 order of tea from Ecuador. She’s now weighing whether to keep her two locations open. There could be hope ahead if gas prices fall and job growth keeps increasing, so as long as there’s demand for their product or service, some are feeling optimistic.
Why this matters: If you’re reading the positive headlines and feeling like you’re the only one who’s not thriving, you’re not alone. From coast-to-coast, the struggle is real, but refocusing on what you sell and the customers who need it can shine a light on the other end of the tunnel. (The New York Times)
One city where small businesses are winning
Vancouver, Wash., just across the river from Portland, has seen a population boom due in part to being in a zero-income tax state located near other major cities. In concert with redeveloping its buildings, the city is also focused on nurturing small businesses with a robust ecosystem of technical support, startup resources and public-private partnerships. A five-year plan implemented last year prioritizes SMBs, entrepreneurship and local main streets. So far, the county has seen a 38% increase in new businesses since 2021, with small businesses accounting for 96% of all businesses.
Why this matters: Not only is Vancouver doing real things to set up small businesses for success, its practices are drawing more first-time entrepreneurs to the city. If you’re thinking about where to launch, expand or move to, consider a city with similar support resources and growth potential. (Axios)
[ THE LOWDOWN ]
[ THE THINK TANK ]
Immigrant, former SBA head shares what fueled her American dream
Maria Contreras-Sweet (U.S. Small Business Administration)
“I arrived [in the U.S.] at the age of five, and I couldn’t speak a word of English … One of my frustrations growing up [was], I never saw a young little Latina girl from Mexico making it big.”
Maria Contreras-Sweet is known for many of her past jobs, including head of the SBA during the Obama administration, California’s Secretary of Business, Transportation, and Housing and founder of ProAmérica Bank.
She recalls a time when she left her native Mexico to immigrate to California. Being raised by hardworking immigrant women influenced her to help her own community, starting organizations that work to help other Hispanic women. She says her commitment to small businesses is due to how they expand the middle class, deepening democracy.
Why this matters: Small businesses make up 98% of all retailers. They don't have the buying power to pressure suppliers, the balance sheet to absorb tariff costs, or the legal teams to navigate what's coming next. What they do have is the SBA. Lending programs, technical assistance and access to capital that Contreras-Sweet spent her career championing. If you haven't looked at what's available lately, it's worth the time. (New York Post)
[ THE DOWNLOAD ]
RFID is coming for your stockroom
Cartesian, a “smart shelf” company that uses radio frequency identification (RFID) tags to help locate items in stores, is already transforming how retailers and warehouses manage inventory, but it’s also aiming to improve indoor location tracking for manufacturing and logistics sectors. It seems simple: the technology, developed at MIT, uses wireless signals to determine where items are. MIT research found that 50% of working hours in retail stores go toward managing inventory, which translates to a $15B problem in the U.S. alone. Streamlining this human process adds up to major savings. If you have an RFID reader, the technology can be remotely integrated.
Why this matters: RFID readers are quickly becoming standard for retailers of all sizes, as they streamline your entire supply chain from incoming deliveries to customer check-out. Scalable tech like Cartesian could be within reach sooner than you think. (Massachusetts Institute of Technology)
[ POLL ]
Do you think the country’s economic policies have let you down?
Thanks for reading today's edition!
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The SKUpe is curated and written by Marcy Medina and edited by Bianca Prieto.
