people helping people – the way it’s always been done.

Reprinted with permission from The Hopkinton Independent
By Sarah Duckett

Looking to get a foot in the door, or a step up the ladder in an existing business or have an idea for a business you want to pursue – but aren’t exactly sure what to do next? 

BarnRaising.org is coming to Hopkinton and, in conjunction with the Hopkinton Chamber of Commerce, Main Street Ventures, Interview Mastery, the Hopkinton Public Library and the Hopkinton Independent, will offer a full-day program inspired by the American tradition of “people helping people” Thursday, May 28 at 15 Main St.

Dana Aaron founded BarnRaising.org five years ago and has been conducting his program all over the state. A wildly enthusiastic person, Aaron said in a phone interview, “There are so many activities and resources available out there. We want to tap into all of it. It is all about community.”

Aaron handles the day’s events, from intake of the participants to setting them together with different people and groups. The first is Research Partners, moving to presentations to a larger group and ending in the final “Barn Raising” gala which will invite the community to meet the “guests of honor” – the participants.

The gala is free and the only thing asked of each community attendee is that he/she offer one idea, suggestion, or contact to each of the “guests.” People helping people!

“If we can do this well, we will have a model for other towns.  We can work together and share information and do something very exciting here in Hopkinton,” Aaron said. 

BarnRaising.org has been featured on the front page of 12 state newspapers, NPR Marketplace and other outlets.  For more detail, please go to BarnRaising.org.  To become a participant in this new venture and find out “what to do next,” call 866-472-1035.

[This is the first step for a new initiative Main Street Ventures is leading in conjunction with our local Chamber of Commerce to create a meaningful business development and support program for "main street" businesses.  If you're located in Massachusetts and would like to learn more, give us a shout.]

small business is the economy

Main Street Ventures is new to WordPress, so we're manually posting some recent musings to add to our library until we have an opportunity to import our existing blog onto this platform.  Thanks for reading!

April 30, 2009
jack speranza

Being based in Massachusetts, we tend to pay attention to developments, facts and trends that reflect our local environment.  Though it's somewhat old news at this point, the SBA released an updated Small Business profile for Massachusetts earlier this year that contains information most will find surprising.  For a state that boasts a big number of large companies (think EMC, Fidelity, Gillette, Raytheon, and Bose to name just a few), it's small businesses (counted at almost 142,000 strong) that employ 98% of our entire workforce.  98% -- that number is truly staggering.

Now here's some even more impressive statistics:

  • small businesses created 34.7% of the state's net new jobs from 2004 to 2005 (the latest available data).
  • microbusinesses (self-employed persons and businesses with five or fewer employees) make up over 80% of all business in the state and employ almost one-fifth of our total workforce (both private & public sector).
  • we're pretty much a reflection of the national economy :: the U.S. has slightly more than 6 million small employers (99.7% of all employers) who collectively provide 50.4% of all private sector employment.  These companies created 78.9% of the nation's net new jobs from 2004 to 2005, and generated more than half of our private gross domestic product (non-farm).

 Now, the not so good news :: creating a sustainable small business is a tough row to hoe.

  • while 66% of new businesses survive past 2 years, only 44% make it past 4 years, and only 31% past 7 years. Various studies reflect:
    • 80% of these businesses failed because of poor management, poor marketing, or lack of capital.
    • critical economies of scale are never achieved. For example, firms with less than 20 employees spend 45 percent more per employee to comply with governmental regulations.

Sources:  U.S. Small Business Administration Office of Advocacy, September 2008
                        University of Maine School of Economics (microbusiness statistics compiled by Prof. J. McConnon, Jr.)
                        American Express

the realities of main street 

Angel investors, venture capitalists, and similar sources of private capital only invest in companies with high revenue potential. If a significant return isn’t possible at the end of the day, there is simply no incentive for the investment to be made. Because of the risk / reward potential, most portfolio companies are supported by significant services to enhance their chances of success.

Similarly, communities will often devote substantial resources and effort to attracting large companies. While landing the “big fish” creates a splash that grabs headlines, the total economic impact to the community is probably far less than if the same resources were diverted to supporting the creation and sustainable
operations of 20 microbusinesses.

Most of the businesses we see along main street don’t fit the “investment” profile of these organizations.  With most destined to build a business that will be lucky to generate revenues of $1-2 million annually, this backbone of our local and national economies are essentially left to fend for themselves.

Being a resourceful bunch, most new entrepreneurs and small business owners make good use of the resources that are available:

  • 52% seek advice from individual mentors;
  • 51% solicit help through social networks;
  • 44% from trade associations;
  • 36% from business advisors;
  • 31% from the Internet; and
  • 27% from Chambers of Commerce.

Source: American Express

Unfortunately, while these resources bring the ability to create solid business strategies within the reach of main street businesses, there are scant resources available to help the entrepreneur or business owner with actually executing against those strategies. Thus 80% of all businesses failures get tracked back to poor management, poor marketing, or lack of capital.

For the past several weeks we've been working with local businesses, organizations and a few academic institutions to create a truly innovative program that just might bring some much needed help to "main street."   Right now, we're looking for input from small business owners -- what help do you think you need most?  Let us know.

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