GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS

 
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GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS
GENESEE
COUNTY
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GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS
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GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS
Dear Readers,                                                                       Table of Contents
                                                   In recent years, Genesee County has navigated social,
                                                    political, and economic ups and downs and demonstrated
                                                     the incredible resilience needed to succeed in the
                                                                                                                  06
                                                                                                                  Overview of Genesee County
                                                                                                                                                                  08
                                                                                                                                                                Genesee
                                                                                                                                                                                                      12
                                                                                                                                                                                              Race & Ethnicity
                                                                                                                                                                County’s                     Disparity Analysis
                                                      face of adversity. A critical part of Genesee County’s
                                                                                                                                                                Resilient
                                                      perseverance is its strong small business community.
                                                                                                                                                                Business
                                                      Small businesses are pillars of the community as their
                                                                                                                                                              Community
                                                      owners work tirelessly to bring economic stability, value
                                                     and vibrancy to the region.
                                                     At EntryPoint, we foster inclusive and vibrant communities
                                                   across the Midwest through research and community-
                                                 focused programming. Over the last six months, we have been
                                                fortunate to have the opportunity to speak with hundreds of
                                                business owners across the county about the needs, challenges,
                                                and opportunities they see for the future of Genesee County.
                                                Based on our research and those conversations, we developed
                                                this comprehensive analysis of Genesee County’s small
                                                business ecosystem and all of the highlights and struggles that

                                                                                                                         18                                       24
                                                characterize this diverse and unique community.
                                                This independent report, funded by the Flint & Genesee
                                                Economic Alliance, is intended to serve as an annual resource
                                                                                                                         Gender                         Earnings Overview
                                                that provides Genesee County with the insights necessary to
                                                                                                                        Disparity
                                                serve the small businesses in the community, reduce obstacles,
                                                                                                                        Analysis
                                                and help business owners navigate challenges that arise when
                                                growing their companies. We at EntryPoint love working with
                                                organizations that value listening to the needs of community
                                                members and are passionate about building opportunity in
                                                their communities. It is our belief that comprehensive and
                                                                                                                                                                                28
                                                                                                                                                                                Capital
                                                                                                                                                                                              32
                                                                                                                                                                                               Impact of
                                                ongoing research is critical to helping economic developers and                                                                 Needs          COVID-19
                                                nonprofits better address the specific and constantly evolving                                                                  of Small       on Small
                                                needs of the small businesses, measure the effectiveness of                                                                     Businesses     Businesses
                                                existing initiatives, build more inclusive programs, support a                                                                                 in Genesee
                                                more diverse and equitable community, and better advocate for                                                                                  County
                                                small businesses in the region.
                                                We extend special thanks to the small business community in
                                                Genesee County for coming together and contributing to this
                                                research.

                                                                                                                                      36
                                                                                                                                      Supporting the Small Business Community
                                                Emily Heintz
                                                Founder & Managing Director, EntryPoint

2021 | Genesee County Small Business Analysis                                                                                                                                                    Table of Contents
GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS
LEADING THE INDUSTRIAL
                                                                                                     CHARGE
                                                                                                     Around 1900, Genesee County became
                                                                                                     the premier location for manufacturing
                                                                                                     in the United States with the Buick Motor
                                                                                                     Company being founded in 1903 and
                                                                                                     General Motors (GM). In 1908, Genesee
                                                                                                     County quickly began to develop. This
                                                                                                     industrial “boom” resulted in a need for
                                                     Genesee County played a central role in the     the county to adapt to the lifestyle needs
                                                    industrial development of the United States.     of workers and infrastructure needs
                                                                                                     for employers. This continued into the
                                                         Through this growth, the county rose to     20th century as the auto industry rose
                                                        international prominence. However, more      and other industrial companies viewed
                                                                                                     Genesee County as an ideal location.
                                                        recently, the county has been hit hard by
                                                                                                     A SHIFTING ECONOMY
                                                economic turbulence and other challenges that
                                                                                                     Beginning in the 1980s, the economy
                                                     have dominated its narrative. Unfortunately,    of Genesee County began to shift due
                                                                                                     to the global recession. This downturn
                                                     these struggles have disrupted connections
                                                                                                     led to the decline of manufacturing
                                                between communities and their commitment to          with General Motors closing multiple
                                                                                                     plants and communities being left
                                                common growth. Still, Genesee County’s unique
                                                                                                     without substantial infrastructure. As
                                                 history has led to a strong sense of culture and    Genesee County headed into the 21st
                                                                                                     century, obstacles continued to present
                                                      steadfastness amongst its people, creating
                                                                                                     themselves with the progressive decline
                                                               potential for growth in the county.   in manufacturing, the recession in 2008,
                                                                                                      and the Flint Water Crisis in 2014. While
                                                                                                          these events impeded growth in
                                                                                                            the county, Genesee County was
                                                                                                              undeterred.

                                                                  Overview of                                   Genesee County is the fifth
                                                                                                                 largest county in Michigan
                                                               Genesee County                                     with a population of over
                                                                                                                   400,000. The innovative
                                                                                                                   residents across the county
                                                                                                                   have strived to maintain
                                                                                                                   a stable economy despite
                                                                                                                  these obstacles. This
                                                                                                                determination is evident in the
                                                                                                               vibrant entrepreneurial culture
                                                                                                              that is present today, along with
                                                                                                            the many community programs
                                                                                                         that provide essential opportunities
                                                                                                      for people across the county.

2021 | Genesee County Small Business Analysis                                                                                                Overview of Genesee County
GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS
Genesee                            Genesee County is perhaps                     SMALL BUSINESSES ARE THE
                                                                                              FABRIC OF GENESEE COUNTY
                                                                                                                                                        60%                             Small Businesses in
                                                                                                                                                                                         Genesee County
                                                best known for its once-
             County’s                           booming auto industry.
                                                                                              COMMUNITIES
                                                                                              Small businesses are spread throughout
                                                                                                                                                                                             BY LOCATION

                                                                                                                                                                                                Flint
             Resilient                          Unfortunately, the area                       Genesee County with the highest
                                                                                              concentration of businesses in larger                                                              Grand Blanc
                                                                                                                                                                                                     Fenton
                                                has more recently suffered
             Business
                                                                                              communities such as Flint, Grand Blanc,
                                                                                              and Fenton.                                                                                            Flushing
                                                a series of blows to its
                                                                                                                                                                                      9
                                                                                                                                                                                                     Swartz Creek
           Community                            economy. Despite these
                                                                                              Small business owners largely tend
                                                                                              to be members of the communities in
                                                                                                                                                                                         %       Flint Township
                                                                                                                                                                                                Clio
                                                setbacks, the unemployment                    which their businesses are located.
                                                                                                                                                                                                Burton

                                                                                                                                                                                 7%
                                                                                              92% of small business owners in Genesee
                                                rate in Genesee County has                    County live in Genesee County. 76% of
                                                                                                                                                                                              Davison
                                                                                                                                                                                             Other
                                                  gradually decreased since                   these small business owners live in the

                                                     2010, indicating steady
                                                                                              exact same municipality of Genesee           5%
                                                                                              County as the business they own. Only
                                                                                                                                                3% 3%             4%
                                                                                                                                                           3 3% 3
                                                       economic growth over                   8% of Genesee County business owners
                                                                                                                                                             %            %
                                                                                              live outside of Genesee County, with
                                                        the past decade.                      the most popular origins being nearby
                                                                                              Shiawassee County and Oakland County.

                                                             Although unemployment
                                                            increased at the pandemic’s
                                                            peak, unemployment is now
                                                           approaching its pre-pandemic                               Flint is known for its strong sense
                                                          levels. Additionally, in response
                                                        to the water crisis, many                                     of community and resilience. Small
                                                      organizations launched efforts to
                                                   improve conditions in Flint, and this
                                                                                                                      businesses like Friends of Berston
                                                national spotlight attracted employers                                get to contribute to this wonderful
                                                to the county. In light of the county’s
                                                resiliency, community leaders and                                     city culture by providing individuals
                                                residents are optimistic that prosperity
                                                lies just around the corner. Genesee
                                                                                                                      with needed resources, as well as
                                                County’s low cost of living, proximity                                outlets to have fun and connect with
                                                to Detroit, and access to the I-69 Trade
                                                Corridor offer incentives for workers                                 others in the community.”
                                                and employers to settle in the area.
                                                                                                                      BRYANT NOLDEN
                                                With its economy steadily improving,                                  Executive Director of Friends of Berston
                                                the place once known as Vehicle City
                                                now contends for a much different title:
                                                Comeback City. However, diversifying
                                                the county’s economy by creating an
                                                entrepreneurship support system that
                                                fosters networks and cultivates strong
                                                leaders will be critical to long-term
                                                sustainability in the area.

2021 | Genesee County Small Business Analysis                                                                                                                    Genesee County’s Resilient Business Community
GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS
When you support local businesses,                                                                                                                WHO ARE OUR NEIGHBORHOOD
                                                                                                                                                                            BUSINESS OWNERS?
                          it benefits the whole community.                                                                                                               Small businesses, as defined by EntryPoint for the purposes
                                                                                                                                                                        of this report, are all registered businesses in Genesee County
                          We are thankful to be in Genesee                                                                                                             with 25 full time employees or fewer and less than $10 million
                          County, to be working with other                                                                                                           in average annual revenue. When viewing a snapshot of the
                                                                                                                                                                    demographics of this population, we can see that small business
                          great local businesses, and for the                                                                                                    owners across the county are a heterogeneous mix of race, ethnic
                                                                                                                                                             backgrounds, ages, and genders. We can also see that the number
                          support that we receive from this                                                                                              of small business owners in Genesee County that have served in the U.S.
                          awesome community.”                                                                                                   Armed Forces, military reserves, or National Guard is 10 times higher than the
                                                                                                                                             national average. In addition, 8% of business owners have a disability or learning
                          ANGIE ROOT                                                                                                         difficulty, which is less than the national average but was also an optional question in
                          Co-Owner of Fireside Coffee Co.                                                                                    our research.
                                                                                                                                             While this diversity is welcome and contributes to the overall health of the local
                                                                                                                                             economy, it also presents some challenges in nurturing this vibrant business
                                                                                                                                             community, meeting the needs of small business owners, and creating more
                                                                                                                                             opportunity for all residents of Genesee County. Creating a consistent and objective
                                                                                                                                             approach to tracking and listening to the lived experiences of community members
                                                                                                                                             through annual research and other methods is crucial to the ability of economic
                                                                                                                                             development and community-focused organizations trying to support this community
                                                                                                                                             effectively. Genesee County has demonstrated incredible resilience and economic
                                                                                                                                             progress, and effective policy initiatives and work from community organizations have
                                                                                                                                             great potential to build on the momentum of this small business community.
                                                                                                                                             Genesee County’s rich culture and diversity make it an attractive community for
                                                                                                                                             business owners of all backgrounds to live and grow their businesses.

SHOP LOCAL FOR ALL YOUR
BUSINESS AND PERSONAL                                 31%           17   %
                                                                                Small Businesses in
                                                                                 Genesee County
                                                                                                                                             Small Business Owners in Genesee County
                                                                                                                                                                                                                                   3%     3%
NEEDS                                                                               BY SECTOR                                        RACE                      41%                                        46%                     3% 4%
Small businesses serve a large variety                                                  Professional Services                                  White, not Hispanic or Latino                 American Indian and Alaska Native,
of needs in Genesee County. Residents                                                   Food & Beverage (Brick-                                Black or African American                     Asian, Native Hawaiian and Other
of Genesee County can seek out                                                          and-Mortar & Pop-Ups)                                                                                Pacific Islander
                                                                                                                                               Hispanic, Latino or of Spanish origin
                                                                                                                                                                                             Two or More Races
tax or legal help at one of the local                                                    Retail (Boutiques & Online)                           Arabic, Chaldean, or of Middle
professional services organizations,
                                                                         13     %       Art, Entertainment                                     Eastern Origin
get lunch with a colleague at a local
restaurant, or meet with friends to
                                                 7%                                     & Recreation
                                                                                       Nonprofit/Social Enterprise                GENDER                             49%                                            51%
shop at a number of retail stores.                                                    Personal Care (Beauty
                                                                                      Salons, Fitness, etc.)                                   Female         Male         Non-Binary
Having businesses in a wide range
of sectors in the region helps the          3%                      8
                                                                    %               Automotive & Transportation
                                                                                Construction
community weather economic storms,
                                                 4%         6
                                                            %   7
                                                                %            Child & Elder Care                                AGE RANGE           16%                22%                     31%                     17%           14%
                                                      4%
such as a significant disruption in a                                   Other
particular industry or a global pandemic.                                                                                                      Age 21-34       Age 35-44         Age 45-54    Age 55-64         Age 64+
Because these events impact each sector
                                                                                                                        SERVED IN THE U.S.
differently, the overall impact on the
community is lessened. This economic
                                                                                                                           ARMED FORCES        10%                                             90%
                                                                                                                                               Yes       No
diversity is also essential to Genesee
County’s continued success given its
                                                                                                                       HAS A DISABILITY OR
reliance on the automotive industry.                                                                                   LEARING DIFFICULTY     8%                                              92%
                                                                                                                                               Yes       No

2021 | Genesee County Small Business Analysis                                                                                                                                                 Genesee County’s Resilient Business Community
GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS
Race & Ethnicity                                                                                                                CITIZENS STATEWIDE SECURITY is a security and surveillance
                                                                                                                                                       technology company opened by Flint resident Deborah L.

                       Disparity Analysis                                                                                                              Johnson in 2003. Deborah and her husband founded the business
                                                                                                                                                       in their basement, working tirelessly to grow their business in
                       Michigan, along with the rest of the nation,                                                                                    the interest of protecting the homes and businesses in their

                       is seeing success and profits from diverse                                                                                      community. Now, after 18 years, Citizens Statewide Security is a
                                                                                                                                                       premier security company in the region. Although the COVID-19
                       professionals within the small business
                                                                                                                                                       pandemic has required Deborah to prioritize the safety of her
                           landscape. However, statewide funding                                                                                       staff by shifting to partial virtual operations, the company still
                             data indicates that companies led                                                                                         strives to meet a customers’ needs with a personal touch. For
                              by underrepresented groups are                                                                                           example, they offer discounts to senior citizens to provide peace

                               systemically underfunded.                                                                                               of mind at a low cost to families with loved ones over 50. As
                                                                                                                                                       her customers attest, this devotion to providing quality service
                                                                                                                                                       security systems makes Citizens Statewide Security an integral
                                 Genesee County has a strong Black, Arabic, and                                                                        part of the Genesee County community.
                                 Hispanic community. The county is predominantly
                                 White, but there is a rich diversity of cultures and
                                ethnicities. When looking at the regions with the
                              highest number of small businesses, we see that some
                             of these areas are among the most racially diverse in
                            Genesee County.

                       Race in Genesee County                                                                                 Genesee County has the opportunity to take a proactive approach in fostering a
                                                                                                                2%            more inclusive community that can retain and support small business owners that are
GENESEE COUNTY                                          71%                                          20%     4% 3%            people of color. In Genesee County, 59% of small businesses are led by someone who
                                                                                                                              is Black, Hispanic, Arabic, American Indian, Asian, or Native Hawaiian (i.e. BIPOC) when
                                                                                                               1%             only 29% of county residents are among those races. Supporting people of color and of
                                                                                                                              marginalized ethnic backgrounds is vital to improving Genesee County’s overall economy.
              FLINT                  35%                                          54%                       5% 5%
                                                                                                                              Small Business Owners in Genesee County
                                                                                                                  2%                                                                                                3%      3%
   GRAND BLANC                                             78%                                           16% 3% 1%     RACE                    41%                                       46%                      3% 4%
                                                                                                                                White, not Hispanic or Latino                American Indian and Alaska Native,
                                                                                                            1%                  Black or African American                    Asian, Native Hawaiian and Other
           FENTON                                                 91%                                         4% 4%             Hispanic, Latino or of Spanish origin
                                                                                                                                                                             Pacific Islander
                                                                                                                                                                             Two or More Races
                                                                                                                                Arabic, Chaldean, or of Middle
                                                                                                              1% 1%             Eastern Origin

         FLUSHING                                                 93%                                          3% 2%
                          White, not Hispanic or Latino
                          Black or African American
                          Hispanic or Latino
                          American Indian and Alaska Native, Asian, Native Hawaiian and Other Pacific Islander
                          Two or More Races

2021 | Genesee County Small Business Analysis                                                                                                                                               Race & Ethnicity Disparity Analysis
GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS
As a family business in the Flint                              CREATIVE HAIR SCHOOL OF COSMETOLOGY was founded by
                                                                                                                  Flint resident Corinthian Carouthers in 1999. A former model
                                                   community, we believe in the                                   with a passion for empowering others through beauty,
                                                   ripple effect. Our goal is to be an                            Corinthian opened the school in the hopes of transforming

                                                   educational institution of excellence                          the lives of students through creative hairstyling. Corinthian
                                                                                                                  brought her two children on board as part owners and her
                                                   and to lead by example in supporting                           family has persevered while facing some of the toughest
                                                   others. Likewise, this amazing                                 challenges of growing a small business. Creative Hair School

                                                   community has been supporting                                  of Cosmetology is celebrating 22 years of service to Genesee
                                                                                                                  County. Not only is Corinthian a devoted educator, but she is
                                                   us for 22 years, and that support                              also committed to giving back to her community through various
                                                   is proof that small businesses can                             initiatives, including Free Care For Your Hair which provides free

                                                   survive by leaning on each other.”                             hair care services at schools and community centers to encourage
                                                                                                                  proper hair maintenance. Thus, Corinthian’s school has become
                                                   CORINTHIAN CAROUTHERS II
                                                                                                                  more than just a school: it is also a flourishing business, a family
                                                   Co-Owner of Creative Hair School of Cosmetology
                                                                                                                  for her students, and a symbol of Genesee County’s unwavering
                                                                                                                  determination in the face of adversity.

                                                                     ECONOMIC IMPACT OF BIPOC-
BIPOC-Owned Small                                                    OWNED SMALL BUSINESSES                                                                        3%            11%                   BIPOC-Owned Small
     Businesses in
 Genesee County                                    80  %             Geography                                    Sectors                                                                 19   %        Businesses in
                                                                                                                                                                                                          Genesee County
                                                                                                                                                                   5%
                                                                     BIPOC-owned small businesses are             Small businesses serve a large variety
   BY LOCATION                                                       located predominantly in Flint. Although     of needs in Genesee County. Businesses                                                     BY SECTOR
                                                                     the vast majority of small business          in the food & beverage and retail

                                                                                                                                                                  5%
          Flint                                                                                                                                                                                                  Food & Beverage (Brick-
   Grand Blanc                                                       owners live in the same community as         industries were most prominent,                                                                 and-Mortar & Pop-Ups)
                                                                     their business, BIPOC small business         followed by nonprofits, personal care                                                           Nonprofit/Social
       Fenton                                                                                                                                                                                                     Enterprise

                                                                                                                                                                                                    17%
                                                                     owners are more likely to live in the same   businesses, and professional services.

                                                                                                                                                                  8%
  Swartz Creek                                                                                                                                                                                                   Personal Care (Beauty
                                                                     community as their business than White                                                                                                      Salons, Fitness, etc.)
        Burton
                                                                     business owners.
         Other                                                                                                                                                                                                   Professional Services

                       6%                                              96% of BIPOC small business owners                                                                                                       Art, Entertainment &
                                                                                                                                                                                                               Recreation

                                                                                                                                                                        9%
                                                                       in Genesee County live in the county,
                                                                       compared to 88% of White business                                                                                                     Automotive & Transportation

                     3%
                                                                       owners.
                                                                                                                                                                                    11%   12
                                                                                                                                                                                           %                Child & Elder Care

                                       7 %                                                                                                                                                              Construction

                          2 2%
                                                                       82% of BIPOC small business owners
                            %                                          live in the exact same municipality of
                                                                                                                                                                                                    Other

                                                                       Genesee County as the business they
                                                                       own.

   2021 | Genesee County Small Business Analysis                                                                                                                                               Race & Ethnicity Disparity Analysis
GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS
Age of Business                                               Employers
                                                       83% of BIPOC-owned                                            These Genesee County businesses employ an average
                                                       businesses in Genesee                                         of 3 full-time employees, 4 part-time employees, and
                                                       County are less than 15 years                                 3 contract employees. For our research purposes,
                                                       old. Over half of these companies                             full-time and part-time employees are those that
                                                       are in their first five years of business.                    receive salary and benefits, whereas independent
                                                                                                                     contractors are paid a fee but are able to obtain
                                                       According to data from the U.S. Bureau of Labor
                                                                                                                     work with multiple organizations if they choose and
                                                       Statistics, about 50% of small businesses nationally
                                                                                                                     generally make their own schedules. Most employees
                                                       fail within their first five years. In Genesee County,
CURTIS ACCOUNTING AND TAX                              67% of BIPOC-owned business cease operations                  of these businesses live within Genesee County,              FRIENDS OF BERSTON is a nonprofit
SERVICES is an accounting firm founded                                                                               showcasing the impact small businesses have on their         organization founded by Flint resident
                                                       before their sixth year of business, making immediate
                                                                                                                     local economies. When residents spend money at a
by Flint resident Marlena Curtis in 2015.              support for new businesses especially critical. A                                                                          Bryant Nolden in 2014. This organization
                                                                                                                     Genesee County small business, much of that revenue
                                                       strong foundation of resources, training, funding and
After years of experience in the accounting                                                                          is spent on wages and benefits for other Genesee             is dedicated to preserving the historic
                                                       support are needed for business owners in their first
industry, Marlena was inspired to start                few years of operation to increase the number of              County residents.                                            Berston Field House and its legacy.
her own business specializing in tax                   businesses that are building long-term opportunity                                                                         Berston Field House was built in 1923
                                                                                                                     Employment Benefits
preparation, accounting, and business                  and wealth in the region. This is particularly true in                                                                     on land donated by Neil Berston and
                                                                                                                     In order to attract the best, most loyal talent, most
                                                       Flint, where we see the highest density of BIPOC-
consulting. Her business has flourished,                                                                             small business owners offer employees benefits. With a       has since been used as a center for
                                                       owned businesses and BIPOC residents.
with individuals and businesses alike                                                                                workforce that predominantly lives in Genesee County,        underserved communities, nurturing some
                                                                                                                     the community is impacted significantly by the ability
praising her expertise in the field and                                                                                                                                           of the area’s top athletic talent. However,
                                                                                                                     of small business owners to provide benefits such as
her commitment to quality customer                                                                                   paid time off, parental leave, healthcare coverage, and      the City of Flint became unable to afford
service. Marlena is also dedicated to                                                       BIPOC-Owned Small        retirement plans to their employees. However, half of all    maintenance of its facilities, and so Bryant
serving her community, providing time and
resources to promoting financial literacy
                                                                               54  %         Businesses in
                                                                                               Genesee County
                                                                                                                     BIPOC-owned small businesses in the region are unable
                                                                                                                     to provide benefits to their full-time employees. Of
                                                                                                                                                                                  stepped in to continue its service to the
                                                                                                                                                                                  community. Now, Friends of Berston

                                                 6%
                                                                                                    BY AGE           the small business owners that are providing benefits,
and empowering others in the region.                                                                                 paid time off and healthcare coverage were the most          hosts events and offers resources for
She regularly provides free tax advice                                                                0-5 Years                                                                   the community that support the area’s
                                                                                                                     common benefits. In addition, nearly all BIPOC-owned

                                                5%
                                                                                                       6-10 Years
online, offers weekly giveaways for CPL                                                                              small businesses are providing either free lunch, snacks,    diversity. Its mission is about more than
                                                                                                       11-15 Years
                                                                                                                     or beverages, as well as free parking, regardless of
trainings, and hosts contests with other                                                               16-20 Years                                                                saving a building – it is about preserving
                                                                                                                     whether they provide any other benefits to their
area businesses. As Curtis Accounting and
Tax Services continues to thrive, Marlena’s     6%                                                    21-30 Years
                                                                                                      30+ Years
                                                                                                                     employees.                                                   one of Genesee County’s most important
                                                                                                                                                                                  landmarks, promoting its legacy for
determination and dedication to her                                                                                  Employee Benefits                                            providing opportunities to youth, and
customers exemplifies the heart of Genesee
County’s small business community.
                                                      12%                                                             25   %
                                                                                                                                                                                  serving as a symbol of both hope and
                                                                                                                                                                                  achievement.
                                                                       17  %

                                                                                                                                                       16%              11%
                                                                                                                                      11%
                                                                                                                     PAID TIME      PARENTAL        HEALTHCARE       RETIREMENT
                                                                                                                        OFF           LEAVE          COVERAGE           PLAN

2021 | Genesee County Small Business Analysis                                                                                                                                                 Race & Ethnicity Disparity Analysis
GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS
Gender Disparity Analysis                                                                                 As a female, African American
                                                                                                                                 business owner, the challenges
                       The distribution of Genesee County’s women-owned businesses
                                                                                                                                 can sometimes be overwhelming.
                       is on par with the national average. According to data from
                       the U.S. Bureau of Labor Statistics, about 50% of all people in                                           I am grateful to this community
                       Genesee County are women. The small business community                                                    for embracing our critical work. It
                       of the county reflects these demographics, as 49% of small                                                is paramount for children to see
                       businesses across the county are owned by women.                                                          business people who look like them.
                                                                                                                                 Growing up, I watched my parents
                                                                                                                                 working and leading single-parent
                                                                                                                                 homes, while also taking the time to
                       Small Business Owners in Genesee County
                                                                                                                                 instill in me a sense of compassion
          GENDER                              49%                                    51%                                         for others and devotion to the
                          Female       Male         Non-Binary
                                                                                                                                 community. Thus, it was natural for
                                                                                                                                 me to become an entrepreneur and
                       THE ECONOMIC IMPACT OF WOMAN-OWNED SMALL BUSINESSES
                       Geography                                                                                                 to work in social justice. My studies
                       Women-owned small businesses are located across Genesee County, with the highest           of prominent African Americans like Malcolm X,
                       density of these businesses located in Flint (59%) and Grand Blanc (10%). Although
                       the vast majority of small business owners live in the same community as their             Harriet Tubman, and Martin Luther King taught me
                       business, female small business owners are more likely to live in the same community
                       as their businesses than male business owners.
                                                                                                                  that supporting local businesses — specifically in the
                          96% of female small                                                                     African American community — is a powerful way to
                                                                  59%                                             raise our constituents from the ails of poverty.”
                          business owners in
                          Genesee County                                                   Woman-Owned
                          live in the county,                                               Small Businesses in   ANGELA STAMPS
                          compared to 88%                                                    Genesee County       Founder of Kentakee Athletic & Social Clubs
                          of male business                                                    BY LOCATION
                          owners.
                                                                                                  Flint           KENTAKEE ATHLETIC & SOCIAL CLUBS is a community-based nonprofit
                          71% of female                                                                           founded by Flint resident Angela Stamps in 2010. The organization is dedicated
                                                                                                  Grand Blanc
                          small business
                                                                                                   Fenton         to empowering and inspiring Genesee County youth through educational
                          owners live in
                                                                                                   Flushing       and physical programs oriented around biking. As a transportation necessity,
                          the exact same
                                                                                                  Swartz Creek
                          municipality                                                                            Angela began biking in 2006, but it soon evolved into a passion. After moving
                                                                                                  Clio
                          of Genesee
                          County as the
                          businesses                  6%                             10%         Burton
                                                                                                Davison
                                                                                                                  back to Flint in 2010, she launched a biking program that has since become
                                                                                                                  a cornerstone of the community. Affectionately nicknamed “The Bike Lady,”
                          they own.                                                           Other               Angela welcomes all students to her programs, hoping to inspire physical

                                                                      5          %                                exercise and self-confidence. Students receive a bike and gear after completing the
                                                    3  %
                                                                  5 6
                                                                  %      %                                        program and are also provided with tenacity, pride, and critical thinking skills that extend
                                                           3 3%
                                                           %                                                      far beyond the bike trails of Genesee County to wherever participants may go.

2021 | Genesee County Small Business Analysis                                                                                                                                          Gender Disparity Analysis
Race                                                                                                                               Sectors
                       The racial makeup of Genesee County’s woman-owned business community reflects                                                      Small businesses serve a large variety of needs in Genesee
                       the overall small business community.                                                                                              County. Businesses in the retail (22%), personal care (20%),
                          52% of woman-owned small businesses are led by Black women, followed by White                                                   and food & beverage (18%) industries are most prominent,
                          (non-Hispanic) women who own 40%.                                                                                               followed by art & entertainment, nonprofits, and professional
                                                                                                                                                          services.
                          In the broader small business community, Hispanic (60%) and Black (56%) women
                          own more small businesses than their male counterparts. White (non-Hispanic)

                                                                                                                                                            2 2%
                                                                                                                                                                 %
                                                                                                                                                                 8%
                          women own about the same number of businesses as their male counterparts.

                                                                                                                                                          4%
                          Arabic (38%), American Indian and Alaska Native, Asian, Native Hawaiian, and other
                                                                                                                                                                                                          Woman-Owned Small
                                                                                                                                                                                             22
                          Pacific Islander (17%) women own fewer businesses than their male counterparts.
                                                                                                                                                                                                  %        Businesses in
                                                                                                                                                                                                            Genesee County
                       Small Business Owners in Genesee County                                                                                                                                                  BY SECTOR
                                                                                                                3%        3%
 ALL BUSINESSES                          41 %                                     46 %                      3
                                                                                                            %        4%                                    8%                                                       Retail (Boutiques & Online)
                                                                                                                                                                                                                    Personal Care (Beauty
                                                                                                                                                                                                                    Salons, Fitness, etc.)
                                                                                                                          2%                                                                                        Food & Beverage (Brick-

 WOMAN-OWNED                             41%                                         52%                             4%        1%                          8 %                                                      and Mortar & Pop-Ups)
                                                                                                                                                                                                                    Art, Entertainment &
                          White, not Hispanic or Latino
                          Black or African American
                                                                       American Indian and Alaska Native,
                                                                       Asian, Native Hawaiian and Other
                                                                                                                                                                                                   20     %         Recreation
                                                                                                                                                                                                                  Nonprofit/Social Enterprise
                          Hispanic, Latino or of Spanish origin
                          Arabic, Chaldean, or of Middle
                                                                       Pacific Islander
                                                                       Two or More Races                                                                         8%                                              Professional Services
                                                                                                                                                                                                                Child & Elder Care
                          Eastern Origin

                                                                                                                                                                               18%
                                                                                                                                                                                                              Automotive & Transportation
                                                                                                                                                                                                          Construction
                                                                                                                                                                                                   Other

                                                 FIRESIDE COFFEE CO. is a coffee and drink mix company                                LINDEN FAMILY EYE CARE is a vision care service founded by
                                                 founded by Swartz Creek resident Carol Davis in 1988. Carol                           Linden resident Dr. Gerianne Mulanix in 2016. After studying in
                                                 began by selling her specialty mocha mixes out of her kitchen,                         Chicago and completing her residency in Kentucky, Gerianne
                                                 and her delicious recipe quickly attracted customers. In 1990,                         returned to Genesee County to start her optometry practice
                                                 Carol moved to Fireside Coffee’s new Swartz Creek location,                          with a commitment to promoting eye health in the community.
                                                 where their fresh-roasted coffee is distributed to retailers                           Born and raised in Linden, Gerianne’s passion for serving her
                                                 nationwide. In 2016, Carol added a coffee shop to the building                     hometown is what drew her back to her roots where she restored
                                                 that, in addition to custom coffee blends, sells handcrafted and                        one of the oldest buildings in history downtown Linden. The
                                                 locally-made ceramic mugs, hand-carved coffee scoops, and                            practice prides itself on being from the community and for the
                                                 pastries. The business is also a family affair; Carol’s drink mixes                community. Upon visiting Linden Family Eye Care, customers will
                                                 are based on a family recipe, and her daughter, Angie Root,                         find work from local artists on display and the practice regularly
                                                 became a part owner in 2018. Further, Fireside Coffee aims to                             hosts family events and supports neighboring businesses.
                                                 give back to the community by offering special area-themed                           Celebrating five years and counting, Gerianne is excited for the
                                                 coffee blends, such as Flint Strong Coffee and Frontline Fuel, and                    future of her practice and is passionate about providing more
                                                 using proceeds to benefit the community.                                                                   than quality eye care to Genesee County.

2021 | Genesee County Small Business Analysis                                                                                                                                                                                        Gender Disparity Analysis
Age of Business                                               Employers
                                                       78% of woman-owned                                            Nationally, 50% of the workforce are employed at
                                                       businesses in Genesee                                         businesses with fewer than 25 people on payroll.
                                                       County are less than 15 years                                 Woman-owned businesses in Genesee County employ
                                                       old. 47% of these companies are                               an average of 2 full-time employees, 4 part-time
                                                       in their first five years of business.                        employees, and 4 contract employees. For our research
                                                                                                                     purposes, full-time and part-time employees are those
                                                       According to data from the U.S. Bureau of Labor
                                                                                                                     that receive salary and benefits, whereas independent
                                                       Statistics, about 50% of small businesses nationally
                                                                                                                     contractors are paid a fee but are able to obtain work
                                                       fail within their first five years. In Genesee County,
THE GRAFTED ROOT EATERY is a                           64% of woman-owned business cease operations                  with multiple organizations if they choose and generally     YUM VITTLES is a food truck opened
restaurant founded by Grand Blanc                                                                                    make their own schedules. Most employees of these            by Flint resident Ebonie Jones in 2019.
                                                       before their sixth year of business, making immediate
                                                                                                                     businesses live within Genesee County, showcasing the
resident Michele Matthews in 2019.                     support for new businesses especially critical. A                                                                          A Flint native, foodie and chef, Ebonie
                                                                                                                     impact small businesses have on their local economies.
                                                       strong foundation of resources, training, funding and
After she noticed few alternatives to the                                                                            When residents spend money at a Genesee County               Jones opened the eating establishment
                                                       support are needed for business owners in their first
processed food served in many eateries,                few years of operation to increase the number of              small business, much of that revenue is spent on wages       because she wanted to create a menu
Michele devoted herself to using natural,                                                                            and benefits for other Genesee County residents.             that reflects the interests and appetites
                                                       businesses that are building long-term opportunity
locally-sourced ingredients to provide the             and wealth in the region. This support is especially                                                                       of her community. As such, the menu of
                                                                                                                     Employment Benefits
                                                       essential for woman-owned businesses and BIPOC-
community with food that is both healthy                                                                             In order to attract the best, most loyal talent, most        Yum Vittles features a diverse selection
                                                       owned businesses, as the business failure rate in the
and delicious. She earned a certificate                                                                              small business owners offer employees benefits. With a       that reflects the culture and cuisine of
                                                       first five years for these companies is approximately
                                                                                                                     workforce that predominantly lives in Genesee County,
in horticulture and decided to pair her                15-20% higher than the national average.                                                                                   Flint – all made from locally-sourced
                                                                                                                     the community is impacted significantly by the ability
knowledge of plant-based nutrition with                                                                              of small business owners to provide benefits such as         ingredients. From soul food classics like
her cooking skills. The Grafted Root                                                                                 paid time off, parental leave, healthcare coverage, and      boiled crab legs to traditional staples
Eatery’s simple yet flavorful menu pairs                      7  %
                                                                                                Woman-Owned Small
                                                                                                                     retirement plans to their employees. 44% of woman-           like lamb chop dinners, Yum Vittles’s

                                                      9%
                                                                                                                     owned small businesses are unable to provide benefits
perfectly with the restaurant’s laid-back,                                                                                                                                        ever-evolving menu keeps patrons on
                                                                                                 Businesses in       to their full-time employees. Of the small business
welcoming atmosphere. For Michele,                                                                Genesee County     owners that are providing benefits, paid time off and        the edges of their seats. With a thriving
The Grafted Root Eatery is about more                                                               BY AGE                                                                        catering business as well, Ebonie hopes
                                                6
                                                                                                                     healthcare coverage are the most common benefits
than serving delicious food – it is about
                                                 %                                                    0-5 Years      offered. In addition, nearly all woman-owned small           that, in the near future, she will be able
nurturing her community.                                                                47      %      6-10 Years
                                                                                                       11-15 Years
                                                                                                                     businesses are providing either free lunch, snacks, or
                                                                                                                     beverages, as well as free parking, regardless of whether
                                                                                                                                                                                  add an additional food truck and possible
                                                                                                                                                                                  restaurant location for Yum Vittles as her
                                                                                                       16-20 Years
                                                                                                                     they provide any other benefits to their employees.

                                                14%
                                                                                                                                                                                  business grows in Genesee County.
                                                                                                      21-30 Years
                                                                                                                     Employee Benefits
                                                                                                      30+ Years

                                                                                                                      30%
                                                           17%
                                                                                                                                                       16%
                                                                                                                                      14%                               14%
                                                                                                                     PAID TIME      PARENTAL        HEALTHCARE       RETIREMENT
                                                                                                                        OFF           LEAVE          COVERAGE           PLAN

2021 | Genesee County Small Business Analysis                                                                                                                                                          Gender Disparity Analysis
Earnings Overview
                             The small businesses of Genesee County are            Average Small Business in Genesee County

                                                                                       10 3 4 5
                            an inextricable element to the region’s sense
                                of strength, culture, and vibrancy. Many of
                                 them have been operating in the area for
                             years, making them well-established fixtures
                                                                                          YEARS IN                                FULL-TIME              PART-TIME                 CONTRACT
                                 in the county and its communities. These                OPERATION                               EMPLOYEES              EMPLOYEES                  EMPLOYEES
                            small businesses are also a notable source of
                         employment for people in the area, consistently           Revenue
                                                                                   Overall, income earned by small businesses had already been declining prior to
                           work with and hire other local businesses, and          2020, and this decrease was further exacerbated by the onset of the COVID-19
                             frequently engage in efforts to contribute to         pandemic. Certain industries more suited to remote work were able to more
                                                                                   easily adapt to this shift in operations than other industries that require in-person
                          other elements of community development. As              activities. This fact demonstrates how
                         such, the significance of small businesses to the         critical it is to foster a diversity of         Average Annual Revenue
                                                                                   industries in the county to better ensure       IN GENESEE COUNTY
                            communities and people of Genesee County               the resilience of the economy.
                           cannot be overstated, and so an awareness of
                                                                                                                                   $
                                                                                                                                                     388,352          364,635
                                                                                                                                                                      $
                                                                                   Small businesses in the personal
                                                                                   care, construction, art, entertainment
                                                                                                                                                                                        308,723
                                                                                                                                                                                        $
                         trends in their earnings is key to identifying and
                                                                                   & recreation, food & beverage, and
                                  managing risks to the region’s economy.          professional services sectors saw the
                                                                                   most significant decrease in revenue,
                                                                                   experiencing a 30-50% decrease in
                                                                                   annual revenue from 2019 to 2020.
                                                                                                                                                      2018                2019              2020

                                                                              $1,800
      Our community needs to focus on
                                                                              $1,600
  reducing obstacles for small business                                                                                                              Average Annual Revenue
                                                                              $1,400
   owners while increasing coordination                                                                                                              IN THOUSANDS
                                                                              $1,200
  across the entrepreneurial ecosystem.                                                                                                                2018    2019         2020
                                                                              $1,000
        Continuing to refine the path for
                                                                               $800
     small business owners is critical for
                                                                               $600
       developing new, innovative, local
                                                                               $400
       industries, while also helping our
                                                                               $200
    existing local small business owners
                                                                                 $0
                          be successful.”
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2021 | Genesee County Small Business Analysis                                                                                                                                                                 Earnings Overview
Expense                                                                                                  Net Income
                           Expenses overall for growing small businesses were consistent for most industries                       Since 2018, nearly all sectors in Genesee County have seen
                                                                                                                                                                                                                              What do business
                            prior to the onset of the COVID-19 pandemic but, overall, declined significantly                       fluctuating net income (income less operating expenses)                                    owners do with
                             during 2020 due to reduced labor costs, cost of goods sold, and other savings
                             associated with reduced operations. However, some industries faced increased
                                                                                                                                   annually. Over the past three years, small businesses in the art,
                                                                                                                                   entertainment & recreation, food & beverage, and professional
                                                                                                                                                                                                                              net income?
                             incremental expenses during the second half of 2020 related to steps taken to                         services industries have been the only industries to see consistent                          purchase equipment and property
                             ensure public safety while operating during the pandemic.                                             and ongoing decreases in their earnings year-over-year.                                      to support their operations
                            Small businesses with the highest fixed costs, significant costs associated with                       It is also important to note that some of the sectors that were                              expand their businesses
                           operating during a pandemic, and challenges operating at full capacity during the                       growing in Genesee County prior to the pandemic have seen
                          pandemic faced the most severe monetary hardships in 2020.                                               some of the largest setbacks:                                                                repay loans

                                                                                                                                       Personal care businesses were growing steadily but have seen                             offer additional employment
                                                                                                                                       nearly a 100% decrease in net income from 2019 to 2020.                                  benefits to employees
                 $1,800
                                                                                                                                       Construction businesses were prospering but have seen nearly                             hire additional people
                 $1,600                                  Average Annual Expenses
                                                                                                                                       a 59% decrease in net income from 2019 to 2020.                                          give year-end raises or bonuses
                                                         BY SECTOR IN THOUSANDS
                 $1,400                                                                                                                Child & Elder Care businesses were growing but have seen
                                                              2018          2019   2020                                                                                                                                       Net earnings is an important metric
                                                                                                                                       nearly a 26% decrease in net income from 2019 to 2020.
                                                                                                                                                                                                                              to benchmark. Earnings and savings
                 $1,200
                                                                                                                                       Nonprofits were prospering but have seen nearly a 24%                                  give small business owners the
                                                                                                                                       decrease in net income from 2019 to 2020. Unfortunately, this                          confidence and flexibility necessary
                 $1,000
                                                                                                                                       fall has occurred during the time when the community needed                            to continue navigating challenges and
                   $800
                                                                                                                                       them the most.                                                                         economic downturns. Net income is a
                                                                                                                                   Small businesses face many challenges that are specific to the                             key element for a county’s economy to
                   $600                                                                                                            industries in which they operate, which is why it is critical to                           function successful and to provide the
                                                                                                                                   regularly monitor the overall health of the economy to both                                overall region with greater resilience
                   $400                                                                                                                                                                                                       and opportunity.
                                                                                                                                   address issues in some areas while identifying paths for greater
                                                                                                                                   success in others. No program or solution addresses the needs
                   $200
                                                                                                                                   and challenges facing all business owners; as such, ongoing
                    $0                                                                                                             analysis of the small business community, listening to their own
                                                                                                                                   reports of need, and flexibility on the part of local economic
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                                                                                                                               $200
CHESSFROG FARMS is a community                          area that has limited access to affordable
garden opened by Marcus Brown, a Flint                  and nutritious food. To help address this                              $150
resident and veteran of the United States               problem, Marcus purchased six acres in
Marine Corps, in 2019. Marcus is dedicated              the Flint community and got to work.                                   $100
to connecting Genesee County with access                Since then, his vision of connecting locals
                                                                                                                                $50
to healthy and affordable food. In Genesee              with nutritious produce has blossomed
County, community agriculture is vital to               just like their community garden. During
                                                                                                                                 $0
providing residents with the sustenance                 the COVID-19 pandemic, Chessfrog Farms
necessary to live. This is because much of              was able to provide food and gardening                                $(50)
Flint can be classified as a food desert, or an         resources to neighbors in need.
                                                                                                                              $(100)                                         Average Annual Net Income
                                                                                                                                                                             BY SECTOR IN THOUSANDS
                                                                                                                              $(150)
                                                                                                                                                                                  2018            2019     2020

2021 | Genesee County Small Business Analysis                                                                                                                                                                                                       Earnings Overview
RAISING CAPITAL:                                                 SOURCES OF CAPITAL
 Capital Needs                                  OBTAINING OUTSIDE                                                According to CB Insights, after lack of market need for their

      of Small                                  FUNDING                                                          product or service, the second-most common reason for a
                                                The average amount of outside                                    business to fail is running out of cash. Therefore, the ability
                                                                                                                 to obtain outside funding when needed is critical for the
   Businesses                                   funding obtained by small
                                                business owners in Genesee                                       ongoing success and growth of small businesses.
                                                County since opening their                                         In total, the amount of outside funding obtained by the
                                                businesses is $232,000.                                            nearly 3,000 small businesses in Genesee County since
      Genesee County’s small                    Nonprofits and businesses                                          they launched was approximately $430 million.
                                                in the food & beverage
           business community                   industry typically obtained
                                                                                                                   The most common sources of capital historically accessed
                                                                                                                   by small businesses in Genesee County are government-
             is a large and vital               more outside funding than
                                                                                                                   backed lending (CDFIs, SBA loan programs, etc.), friends
                                                businesses in the personal care                                                                                                                          AWAKENED NATURALS is a health and
       element of the region’s                  or professional services industry.
                                                                                                                   and family, and local programming (Genesee County
                                                                                                                   Restaurant Relief Grant, etc.). Nationally, prior to the                              beauty retail store launched by Flint
       overall economy. These                     In the last year, the total amount                                                                                                                     resident Avi Morozov in 2016. After learning
                                                                                                                   pandemic, the most common sources of funding for
    businesses are part of the                    of outside funding obtained by small                             businesses are friends and family and bank loans.                                     about the negative effects that lab-made
                                                  business owners in Genesee County
     fabric of that community                     increased by 125% from the year prior. Over $10 million
                                                                                                                   Prior to 2020, the most commonly-accessed capital was                                 chemicals found in many beauty products
                                                                                                                   from friends and family, high net-worth individuals (angel                            can have on consumers’ health, Avi
    and create vibrant culture                    was raised by small businesses in the region.
                                                                                                                   investors, wealthy individuals, etc.), and foundation/
                                                  60% of all small businesses in Genesee County obtained                                                                                                 decided to create products without these
           for both visitors and                                                                                   corporate grants.
                                                  some amount of outside funding in 2020.                                                                                                                substances in favor of organic, natural
    those who call the region
                                                                                                                         Sources of Capital Historically Accessed                                        ingredients. She initially operated without
      home. However, there is                     Percentage of Small Businesses                                         by Small Businesses in Genesee county                                           a storefront and planned to launch her
      work that must be done                      that Obtained Outside Funding                                                                                                                          first store in Flint on April 1, 2020, but was

       to ensure the economy
                                                  ANNUALLY

                                                                                     60%                         40  %                                                       Government-Backed Lending   forced to postpone due to the pandemic.
                                                                                                                                                                                                         Avi initially struggled with the new, more
       is stable and that there
         remains robust capital
                                                                                                                 19%                                     Other Individuals                               virtual normal, but was able to pivot by
                                                                                                                                                                                                         creating a new marketing plan, offering
   available for entrepreneurs                                                                                   16%
                                                                    18%
                                                                                                                                                 Local Programming
                                                                                                                                                                                                         new products, and receiving SBA support.
              and their growing
     companies. The ability of
                                                    9%                                                            8%                Traditional Bank Financing
                                                                                                                                                                                                         Now, Awakened Naturals is celebrating
                                                                                                                                                                                                         achievements in the face of adversity,
                                                                                                                                                                                                         and looks forward to providing Genesee
     small business owners to
       access the capital they
                                                    2018             2019             2020                        8%                Government Grants/Programs
                                                                                                                                                                                                         County with products that amplify one’s

                                                                                                                  8%
                                                                                                                                                                                                         beauty through physical health and
                                                                                                                                    Foundation/Corporate Grants
   need is critical to ensuring                 42% of entrepreneurs start their businesses with little or                                                                                               wellness rather than in spite of it.
                                                no outside funding and typically, it is recommended that

                                                                                                                  4%
        the county’s economic                   entrepreneurs have at least three to six months of cash                      Community Fundraiser
         health in the long run.                reserves when starting a business. Nationally, for individuals

                                                                                                                  3%
                                                that do not have significant personal funds, the ability to
                                                                                                                            High Net-Worth Individuals
                                                work a second job, or a positive credit history to secure
                                                a personal credit card, starting a new business can be
                                                significantly more difficult.
                                                                                                                  2%       Crowdfunding through Platform

2021 | Genesee County Small Business Analysis                                                                                                                                                                         Capital Needs of Small Businesses
OBSTACLES IN OBTAINING                                Obstacles in Obtaining Funding and Resources                                                        Anticipated Sources of Capital                                                        CAPITAL NEEDS OF SMALL
FUNDING AND RESOURCES                                 BY PERCENTAGE OF BUSINESSES                                                                         BY PERCENTAGE OF BUSINESSES                                                           BUSINESSES
There are a variety of challenges small                                                                                                                                                                                                         75% of small business owners anticipate
business owners face when trying to
obtain outside funding or other resources       29%                                                           Lack of Access to Necessary Network
                                                                                                                                                    44%                                                             Government-Backed Lending
                                                                                                                                                                                                                                                needing additional outside funding in
                                                                                                                                                                                                                                                order for their businesses to continue
to grow their businesses.                                                                                                                                                                                                                       operating successfully. Small businesses
  29% of small business owners in               28%                                                         Credit or Collateral Requirements
                                                                                                                                                    30%                                         Local Programming                               in Genesee County are hoping to
                                                                                                                                                                                                                                                obtain over $180 million in outside
  Genesee County reported having

                                                23%                                                                                                 30%
                                                                                                                                                                                                                                                funding over the next 18 months; on
  difficulty obtaining outside funding                                                        Minimal Education/Training Programs                                                               Government Grants/Programs
                                                                                                                                                                                                                                                average, this is 3x what they have
  because they did not have access to
                                                                                                                                                                                                                                                been able to obtain in the past. Small
  the necessary network of individuals
  or organizations who might invest
  in their companies. Many investors
                                                23%                                           Strict Regulatory/Funder Requirements
                                                                                              or Eligibility                                        26%                                   Foundation/Corporate Grants
                                                                                                                                                                                                                                                business owners hope to secure this
                                                                                                                                                                                                                                                capital from government loans through
                                                                                                                                                                                                                                                Community Development Financial
                                                20%                                                                                                 20%
  say they would prefer a warm
                                                                                       Lack of Mentorship                                                                        Other Individuals                                              Institutions or the Small Business
  introduction over a cold call, making
                                                                                                                                                                                                                                                Administration, local programming, or
  it difficult for business owners who
  are outside of these networks to
  initiate these funding opportunity
                                                19%                                 Lack of Access to Proper Advisors
                                                                                                                                                    20%                         Traditional Bank Financing
                                                                                                                                                                                                                                                government programs like Community
                                                                                                                                                                                                                                                Development Block Grants.

                                                15%                                                                                                 13%
  conversations. 28% of small business
                                                                          Racism/Sexism                                                                                High Net-Worth Individuals
  reported difficulty obtaining outside
  funding due to credit or collateral
  requirements.
  Sadly, business owners report that
                                                14%                     Issues with Financial Records/Bookkeeping
                                                                                                                                                    10%            Crowdfunding through Platform

  racism is more of an obstacle to
  accessing capital and resources for                                                                                                               10%            Community Fundraiser

  their business than issues with their
  financial records or bookkeeping.

                                                Systematic racism is in the fabric                                                                       ART BEAUCHAMP ACE HARDWARE is a hardware store that
                                                                                                                                                     was opened in 1948 and is owned by Flint resident Sally Kagerer.
                                                of the foundation of our country.                                                                    The store has been located on Pierson Road since 1956, at which
                                                We see noticeable proof in lack of                                                                       point Pierson was simply a dirt road. Through all the changes

                                                access to capital for entrepreneurs.                                                                 since that time, Art Beauchamp Ace Hardware has been devoted
                                                                                                                                                            to serving its community. For example, at the onset of the
                                                More transparently, financially                                                                       pandemic, many were using home quarantine as an opportunity
                                                disenfranchised Black communities.                                                                        to complete home improvement projects. While many large

                                                Businesses are suffering, and they                                                                    hardware chains were closing, this store was able to cater to the
                                                                                                                                                      changing needs of the community, both by remaining open and
                                                deserve better.”                                                                                    by expanding their already well-established website. While the dirt
                                                EBONIE GIPSON                                                                                        road the store opened on 65 years ago has since been paved, Art
                                                Business Coach & CEO of I’m Building Something                                                       Beauchamp Ace Hardware remains dedicated to the “North End”
                                                Consulting LLC
                                                                                                                                                                           neighborhood in which it resides in spite of it.

2021 | Genesee County Small Business Analysis                                                                                                                                                                                                              Capital Needs of Small Businesses
Impact of COVID-19 on Small                                                              60% of small businesses in Genesee County reduced
                                                                                                                their hours of operation or employee hours. Reasons

                       Businesses in Genesee County
                                                                                                                for this included: employees having increased
                                                                                                                childcare responsibilities due to daycares and schools
                                                                                                                being closed, needing to reduce the number of people
                                                                                                                inside a physical business location, and needing to cut
                       The rapid onset of the COVID-19 pandemic caused a dramatic
                                                                                                                overall operational costs.
                       shift in the way we live, work, and interact with other people. Small                    55% of companies needed to temporarily close their
                       business owners needed to make large operational shifts to protect                       businesses. Reasons for this included: The inability to
                                                                                                                operate virtually, their business being obsolete during the
                       their employees and customers. For example, many businesses                              pandemic, needing time to make changes to operations or
                       increased their online presence and employees transitioned to                            the physical location to make it safer to operate, and needing
                                                                                                                to step away from the business because of increased childcare
                       working from home. However, some types of businesses are not able                        responsibilities.
                       to operate virtually; as a result, these companies needed to close
                                                                                                              OPERATIONAL SHIFTS
                       completely until it is safe to operate in-person again. Additionally,                  44% of small businesses in Genesee County had employees reporting to their
                       fixed costs like rent continued to increase. Several downtown regions                  business locations as they did prior to the pandemic. This corresponded with many
                                                                                                              precautions, such as reduced staffing or changes in operations like curbside pickup,
                       will take longer to recover as some businesses decide to remain                        but many businesses needed employees to be at their physical location in order to
                       virtual instead of paying higher rents. As a result, the small business                stay operational.
                                                                                                                15% of small businesses must remain closed until after the pandemic is stabilized,
                       community has been split between traditional operations, hybrid
                                                                                                                as they are not able to modify their operations in a way that keeps their employees
                       operations, fully-remote operations, temporary closure, and closure                      and the public safe. Most of these are businesses that include an event, gathering,
                                                                                                                or indoor physical activity; in these cases, attempting to remain open while taking
                       for the foreseeable future. Now, over a year after the onset of the
                                                                                                                the necessary safety precautions has been less cost effective than simply
                       pandemic, many are wondering when things will return to “normal.”                        remaining closed.
                                                                                                                41% of businesses are operating virtually in some capacity.

                                                                                                                                3%
                       WORKING REMOTELY: TOUGH DECISIONS
                       The most common actions taken by small business owners during the pandemic were                 10%                 15%            Shift in Operations
                                                                                                                                                            Due to the Pandemic
                       to reduce hours, temporarily close their companies, and finding any possible avenues
                       to reduce costs.                                                                                                                         We have to be closed
                                                                                                                                                                 Employees are reporting to our
                       Actions Taken During the Pandemic BY PERCENTAGE OF BUSINESSES
                                                                                                              17 %                                               business location as they did prior
                                                                                                                                                                 to the pandemic

                        60   %
                                        55      %                                                                                                                 We are operating 100% virtually

                                                     48
                                                                                                                                                                   We are a mixture of virtual and
                                                          %                                                                                                        in-person
                                                                                                                                                                  We are mostly virtual

                                                                   34%           27%                             11%                             44%
                                                                                                                                                                 We have always been virtual

                                                                                                 9%
                       REDUCED      TEMPORARILY       BUDGET     WORKING        LAYOFFS        NONE OF
                        HOURS         CLOSED        REDUCTIONS   REMOTE                       THE ABOVE
                                    THE BUSINESS

2021 | Genesee County Small Business Analysis                                                                                                   Impact of COVID-19 on Small Businesses in Genesee County
BUSINESSES HIT THE HARDEST                    In addition, many of these types
                                                                     Understanding the net earnings of various     of businesses aren’t on the top of
                                                                     industries during the pandemic helps shed     people’s minds when they think
                                                                     light on types of businesses that might       about “supporting their local small
                                                                     need greater support in the coming years      business community,” so it’s critical
                                                                     as they recover from the pandemic. These      to encourage residents in the region
                                                                     industries were seeing growth and profits     to expand their definition of “shopping
                                                                     prior to 2020 and have since seen some        local” to “doing business locally.”
                                                                     of the largest losses during the pandemic.
                                                                                                                   A RETURN TO BUSINESS AS USUAL
                                                                     Personal Care                                 Among small businesses that have
                                                                     Businesses such as beauty salons and          been operating virtually, most owners
FLINT TRADING CO. is a unique gallery and shopping                   fitness centers, were unable to operate       anticipate they will remain virtual for the
experience that offers limited edition art objects, home goods,      for a portion of 2020 but are typically       foreseeable future and are not actively
                                                                     located in higher rent, downtown              planning to return to a physical location.
and jewelry from local artists. Founded in 2018 by Walter
                                                                     buildings. An additional hardship is the
McAdow, the company was poised for a successful year at
                                                                                                                   Return to Physical Location
                                                                                                                                                                                                 32%
                                                                     view that personal care is not a necessity,
the beginning of 2020. However, 2020 was an unexpected               so many customers won’t return until

                                                                                                                                   23%
challenge for the atelier and the company’s status as a new          after the pandemic is completely over.
                                                                     Income for personal care businesses
business. Unable to acquire PPP funding, Flint Trading Co. still

                                                                                                                                                   17%
                                                                     was down 45% in 2020 – the largest
doubled down on achieving success by moving to a larger,             decrease in income of any industry. When
more open space that would allow people to enter without an

                                                                                                                   10%
                                                                     businesses reopened in summer of 2020,
appointment while still abiding by COVID-19 social distancing
guidelines. As a result, the store increased its sales by over
                                                                     personal care providers had significant
                                                                     costs to operate during a pandemic due                                                        9%              9%
                                                                     to supplies and operational shifts that
25% — including an increase in private commissions — despite         were required to keep their customers
the decrease in walk-in business. Flint Trading Co. is the only      safe. Overall, net earnings for personal
                                                                                                                   WINTER          SPRING         SUMMER           FALL            2022     NEVER, WE HAVE
atelier in Flint that remains committed entirely to artist-made      care businesses were down by over 100%.
                                                                                                                    2021            2021            2021           2021                    DECIDED TO REMAIN
goods and truly custom-made items designed by locals. No                                                                                                                                    VIRTUAL FOR THE
                                                                     Art, Entertainment & Recreation                                                                                      FORESEEABLE FUTURE
matter what their customer’s budget, the handcrafted, custom         Businesses in the art, entertainment
pieces honor and reflect the personal stories of their patrons.      and recreation industry largely rely on         Largely, these businesses are in the
                                                                     gatherings of people and events. Many           professional services industry, or
In the near future, Flint Trading Co.’s new space will allow it to
                                                                     of these businesses cost more to operate        otherwise had very small back offices
host small workshops for people that want to work alongside                                                          that shifted to virtual operations and can
                                                                     during the pandemic than they would
artists and make their own pieces. Until then, and in the spirit     be able to earn so many have remained           easily stay that way. Business owners
and celebration of Flint’s many artists resilience during this       closed during most of the past year. In         are finding that many jobs that were
                                                                     total, net earnings for Art, Entertainment      significantly performed on the computer
pandemic, this special home goods and art object store is a
                                                                     & Recreation businesses are down by             have very successfully shifted to remote
testament to strength of the Flint community.                                                                        positions. They have retained high
                                                                     72% from prior to the pandemic.
                                                                                                                     productivity while greatly reducing costs
                                                                     Construction                                    related to maintaining office space.
                                                                     Businesses in the construction industry
                                                                                                                     For business that are planning to
                                                                     aren’t able to shift operations to operate
                                                                                                                     return to their physical location, most
                                                                     virtually so were forced to remain closed
                                                                                                                     plan to return in spring and summer
                                                                     until it was safer to work in person. In
                                                                                                                     of 2021.
                                                                     total, net earnings for Construction
                                                                     businesses are down by 59% from prior
                                                                     to the pandemic.

2021 | Genesee County Small Business Analysis                                                                                                          Impact of COVID-19 on Small Businesses in Genesee County
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