[ad_1]
Starting a small business might seem intimidating to some but Milwaukee County has a strong network of support systems in place to help those willing to test their idea in the market. But there are some gaps in mentorship and leadership that can potentially hinder growth, according to a report from the Wisconsin Policy Forum.
The report states Milwaukee County roughly 13,200 businesses with 10 or fewer employees and nearly 6,000 businesses that have between 10 and 99 employees.
From 2012 to 2020, the number of small and micro businesses in Milwaukee County grew 2.7%. Some of the areas with the most small businesses in the county are in the downtown, Historic Third Ward and in the Wauwatosa area.
Here are some other interesting figures from the report:
Milwaukee has 50 small business support organizations
The city has at least 50 small business support organizations (BSOs) that range from for-profit, non-profit and government organizations that exist to help budding companies. Most offer capital, grants, mentorship, networking and some offer each of those benefits to their members.
“Overall, it appears that a sufficient number of service providers exist and that there are no major service types that are needed but entirely absent,” the report states.
“Through our interviews with local leaders, we also heard that Milwaukee’s BSOs generally collaborate well with one another and that many have established formal and informal relationships with other organizations in the area for referrals or program stacking or combining of services. Several broader efforts also are convening groups of BSOs to make connections and solve problems collectively.”
Lack of a leading organization
Each of the BSOs operate independently of each other and will collaborate, but there isn’t one organization that is leading them all to create a better small business ecosystem for the county.
The report points to KCSourceLink in Kansas City and the New Economy Initiative in Detroit and Detroit Economic Growth Corp. as an examples of organizations that links small businesses to resources and brings organizations together to find solutions to problems entrepreneurs are facing.
“Establishing some sort of ‘front door’ may be beneficial, whether through one organization taking the lead on navigation services (like KCSourceLink has done in Kansas City) or through other means,” the report states. “One possibility would be to establish a business center where multiple BSOs could provide seamless assistance to local entrepreneurs in one place.”
The leaders interviewed for the report also stated a need for a “no wrong door” approach that “would ensure business owners could receive referrals to a broader network of services regardless of which group they approached first.”
Capacity gaps limit opportunities
While the report does not identify major gaps in the availability of support services “those we interviewed pointed to several service types for which the local need outstrips current capacity. The three we heard most consistently were one-on-one business coaching, financial education, and access to capital.”
“Poor financial management skills among entrepreneurs in Milwaukee is another common concern, and though some financial education services for entrepreneurs exist, expanded programming could be helpful,” the report states. “One option for increasing access to financial coaching would be to utilize UEDA’s (Urban Economic Development Association) Financial Health Counselor Certification program to train cohorts of individuals who specifically work with entrepreneurs and small business owners.”
Access to capital is the lifeblood of a business. There are several community development financial institutions that work directly with small businesses, but more is needed.
“The city’s network of CDFIs is viewed by many as a strength of the local ecosystem, but some leaders we interviewed said more capacity is needed to meet the demand from individuals working to develop small businesses,” the report states.
Philanthropic organizations could be a big help for small businesses in Milwaukee
Cities like Detroit and Chicago have formed local collaboratives to raise money to offer grants to small businesses and further develop the economic ecosystem in their cities.
“In Milwaukee, no such collaborative effort exists for entrepreneurship,” the report states.
However the Community Development Alliance could be a model to build off of as the organization has several philanthropic organizations who give to affordable housing strategies.
“A similar, coordinated approach to funding business support services in Milwaukee could help to expand the capacity for needed services and drive more collaboration within the ecosystem,” the report states.
The report’s conclusion
Work is being done by private and public sector stakeholders to help improve and grow the small business community in Milwaukee. However there is room for improvement.
“Our research suggests that with more focused leadership, coordination, and financial support, the city’s current small business support ecosystem could become even healthier and achieve greater effectiveness in addressing the varied needs of small business owners and entrepreneurs,” the report states.
[ad_2]
Source link