small businesses

With Mother Nature providing the raw material, a company based in Madison, Wisconsin, saw a chance to grow its business, help the local economy, and promote a sustainable environment all at the same time.

WholeTrees Architecture and Structures is a small, woman-owned business that has successfully leveraged four Small Business Innovation Research (SBIR) grants into a business opportunity that has increased local revenue and grown the company from six employees and gross income of $150,000 in 2009 to 17 employees and gross income of about $1 million in 2013.  The company projects revenue increasing to $4 million by 2016.  USDA’s National Institute of Food and Agriculture (NIFA) administered the SBIR grants.

These days, it seems like it’s easier than ever to turn a good idea into reality. This is the era of Kickstarter, where entrepreneurs can connect with potential investors at the click of a button.

Of course, it takes more than money to grow an idea. It takes an atmosphere that fosters creativity and rewards innovation. And at a deeper, less obvious level, it requires strong, secure infrastructure—roads and bridges, but also internet access and community facilities like hospitals and schools—that improves connectivity and access to information, moves products to market, and makes communities competitive and attractive to new businesses and investments.

What began as a small sail-making shop in 19^th century New York City has evolved into the modern realization of one family’s American Dream—a family-owned and –operated small business whose product has been a part of some of the most iconic images in our nation’s history.

Alexander Annin’s sail-making shop, established in the 1820s, has evolved into the oldest and largest flag company in the United States and is still in operation today. Commencing with Zachary Taylor’s 1849 presidential inauguration; to the flag-draped coffin of President Abraham Lincoln in 1865; onward to the iconic image of U.S. Marines hoisting the flag on Iwo Jima’s Mount Suribachi in 1945; to the flag planted by Neil Armstrong and Buzz Aldrin on the moon in 1969—all were Annin-made flags.

Agriculture is one of the brightest spots in our economy, and the American brand of agriculture is surging in popularity worldwide. Trade and market access support good-paying jobs and drives economic growth. A strong rural economy is critical to the overall economic health of the United States.

The past five years represent the strongest in history for agricultural trade with U.S. agricultural product exports totaling $619 billion over five years. Agricultural exports in fiscal year 2013 alone reached $140.9 billion, the highest level on record, and supported nearly one million jobs here at home.

This week, I visited Canonsburg, Pennsylvania, a small city outside of my hometown of Pittsburgh to kick off the first of five Made in Rural America forums designed to help rural small businesses access the information they need to grow through exports.

The global appetite for high-quality, American-made products is well established. Over the past five years, rural America has achieved record agricultural exports, but the rural economy is diverse. Last fiscal year, agricultural exports reached a record $140.9 billion and we are on track for another record year, with fiscal year 2014 agricultural exports projected to reach $149.5 billion. Last year was also the fourth-straight record-setting year for U.S. exports as a whole, reaching $2.3 trillion.

In his Small Business Week Proclamation earlier this week, President Obama said, “Small businesses represent an idea at the heart of our Nation's promise -- that with ingenuity and hard work, anyone can build a better life.”

Having started my own manufacturing company in rural Texas many years ago, I believe small business folks are American heroes. What it takes to get a business going and the immense responsibility of employing others and developing markets is very hard work especially in rural areas.  The work of an entrepreneur is also rewarding and those relationships with employees, customers and the community are lifelong.  For rural entrepreneurs, their companies are part of the fabric of the community.

One of the main obstacles getting a business off the ground is locating the capital to invest in communities.  Seeking a business loan or receiving an equity investment is such a critical path for startups and to keep entrepreneurship vibrant in rural America because we know the type of jobs created by small business are the ladders of opportunity.

National Small Business Week began yesterday with a proclamation from President Obama recognizing the small businesses across the Nation which, especially in our rural and small-town communities, making vital contributions to communities and the American economy.

Individually, the impact of a small business may seem minor in comparison with conglomerates. The Small Business Administration (SBA), however, estimates that more than half of our American workforce either owns or is employed by a small business, and two out of every three new jobs in the U.S. each year is created by--you guessed it--a small business. It’s clear this portion of economy is significant, but in rural towns and areas where each job and transaction has an effect on the community, small business is essential.  In rural America, the entrepreneurs, mom-and-pop shops, agri-businesses, small-scale manufacturers, and other enterprises are the local economy.

It’s National Small Business Week!

In support of the Obama Administration’s efforts to put Americans back to work and create an economy built to last, the Department of Agriculture (USDA), Office of Small Disadvantaged Business Utilization will host Rural Small Business Connections, a training event to provide small businesses with educational networking sessions and opportunities on how to successfully do business with USDA and other Federal agencies.

Sometimes big things come in small packages.  At USDA, we provide programs and services to producers of all sizes – and now we’re offering even more to small-scale and local beef producers.  Many small-scale producers are contributing to the growth of the grass-fed beef industry.  And, thanks to a new program tailored to meet their needs, they now have another resource in their marketing toolbox.

The USDA Grass Fed Program for Small and Very Small Producers, administered by USDA’s Agricultural Marketing Service (AMS), is designed as a verification tool for small and very small producers to certify that animals meet the requirements of the grass-fed marketing claim standard and will make them eligible to have their products marketed as “USDA Certified Grass Fed Beef”.

With today’s label-conscious, savvy consumers, producers are relying on verified and certified labels to help distinguish their products in the marketplace.  This new initiative joins our suite of consumer-trusted verification programs for meat, poultry, and eggs.

As a first-time small business owner, Nabor Ceja, has learned a lot since opening his restaurant, Chicken & Teriyaki, in Hood River, Oregon. Like many immigrants, Mr. Ceja wasn’t familiar with local processes and requirements for things like business registration, tax numbers, insurance, permits, licensing, hiring and employer obligations. With limited English proficiency, just asking the different agencies and offices for help was a significant barrier.

Mr. Ceja is not alone. Thirty percent of the population in Hood River County is Hispanic. Until recently, however, there were no small business assistance providers meeting the unique needs of the Hispanic community.

Gabriel Muro is the business services coordinator at a social services nonprofit called The Next Door. “I have met so many people who start businesses using their personal accounts, or who don’t get their W-9 forms submitted in time to demonstrate legal status and claim important exemptions. All of these things are done differently in Mexico.”