Over the last year and a half, small businesses have been coming up with new strategies to generate revenue and retain customers during the COVID-19 pandemic. During the annual Big Week for Small Business, CO— invited entrepreneurs and small business experts to share their own strategies and experiences in navigating today’s business challenges.
During the Small Business Update session on October 21, Jeanette Mulvey, editor-in-chief of CO—, spoke with Neil Bradley, EVP, chief policy officer and head of strategic advocacy at the U.S. Chamber of Commerce, about the current small business climate and how business owners can set themselves up for current and future growth.
Businesses are being created in record numbers
Bradley noted that 4.3 million new businesses were started across the country last year. This is a 24% increase from the year before — an impressive statistic, considering 2005 was the last year new business starts were at a double-digits increase. Bradley said that while some of these businesses were created out of necessity from the pandemic, the truth is many people made the choice to become entrepreneurs voluntarily.
“You have people who… actually saw opportunities in the pandemic and seized [them],” he said. “Lots of people were empowered to take that chance and we unlocked and unleashed a lot of new entrepreneurs on the scene.”
[Read more: Adapting to the Digital Business World]
This growth is happening across all sectors, especially retail, transportation and warehousing. However, the majority of growth is in the nonclassified sector where these new businesses just don’t fit into the traditional definitions.
“[This] means they may be the real entrepreneurs and the innovators who may be creating something new,” said Bradley. “We probably didn't know how to classify [tech companies] either and now they’re some of the biggest companies in the world.”
You have people who… actually saw opportunities in the pandemic and seized [them]. Lots of people were empowered to take that chance and we unlocked and unleashed a lot of new entrepreneurs on the scene.
Neil Bradley, EVP, chief policy officer and head of strategic advocacy, U.S. Chamber of Commerce
Consider the government a resource and a potential customer
For small businesses just starting out, there may be confusion on how to start and what resources are available. According to Bradley, technical assistance and capital assistance are both important resources, especially programs from the Small Business Administration.
“There are [incubator] programs likely in your local community supported by the Small Business Administration,” he explained. “There’s also one specifically made for manufacturers that can help you navigate some of the practical issues of starting up a business.”
It’s also important to consider the government to be a potential customer. Bradley noted that your local, state and federal government may be the largest consumer in your area and in need of goods or services that your small business can provide.
“Almost all levels of government have set aside programs for small businesses,” said Bradley. “Try to get in on that contractor lane and let the government be one of your customers.”
[Read more: How to Bid on a Federal Government Contract]
Businesses are getting innovative to attract employees
The labor force is about 3 million people smaller than before the pandemic, said Bradley, making hiring across industries increasingly difficult. While some people in the workforce are leaving to create their own companies, others are taking on gig work or retiring early. Bradley says that businesses are coming up with new ways to hire in this market.
“Some businesses have the ability to offer flexible work arrangements,” he said. “Flexible work arrangements doesn’t mean working remote all the time but maybe [having] flex days when employees can work remote. That seems to be attractive.”
There are instances where hiring bonuses have had success in attracting workers. Businesses can also help their employees out with their student loan debt.
“You can help pay off that student loan debt and obviously deduct that as a business expense,” explained Bradley. “You can have a conversation with your employees and say, ‘Hey, maybe rather than that wage increase, I'm going to offer a student loan repayment benefit and you don't have to pay taxes on that.’”
To learn more about how small businesses can grow in the COVID-19 era, check out our recap of insights from SBA Administrator Isabella Casillas Guzman.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
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