Hartford Business Journal

www.HartfordBusiness.com • June 15, 2020 • Hartford Business Journal 25 OPINION & COMMENTARY OTHER VOICES Supporting small businesses lifts Greater Hartford's economy By Calvin Vinal, Erika Frank and Fernando Rosa A ny Hartford Business Journal reader can tell you: small business drives Connecticut's economy. According to the U.S. Small Busi- ness Administration's 2019 Small Business Profile: • Small businesses make up 99.3% of Connecticut's businesses, and employ nearly half (48.9%) of our workforce. • Small businesses created 26,960 net jobs in our state, with firms employing fewer than 20 adding half of them (13,803). • Connecticut ranks sixth in the country for the average number of employees per woman-owned business (9.9), and 25th for aver- age number of employees per minority-owned business (8.4). Still, small businesses do more than generate revenue. They sup- port the well-being of our region. Small businesses keep money local. Local businesses tend to spend more on labor, goods and services from other local sources. The Andersonville Study of Retail Economics found $68 of every $100 spent with a local firm stayed in the local economy, com- pared to $43 spent at a chain store. Small businesses employ more people. Locally owned businesses employ more people per unit of sales, retain more employees during economic down- turns, and recover more quickly. Small businesses promote income growth and help re- duce poverty. Econo- mists have found that local entrepreneur- ship has a positive effect on personal income and a nega- tive effect on poverty. Communities domi- nated by large retail often see increased demand for supports including Medicaid, food stamps and housing assistance. Small businesses promote a healthy community. Vari- ous studies have found that cities with more locally owned businesses tend to have stronger social networks, more engaged citizens and better success in solving local problems. While small business ownership is valuable across a community, it is not easy. Overall, 21.5% of small businesses fail in the first year and 30% fail in the second. Running a successful minority- and women-owned business enter- prise (MWBEs) is made even more difficult by structural disparities around race and gender that limit access to capital and other resources. A recent report by Brookings found that structural ex- clusions depress the number of business- es owned by MWBEs as well as their rev- enues and numbers of employees. In response, the city of Hartford, Hartford Foundation for Public Giving, HEDCO and Capital For Change launched the Small Business Emergency Assistance Grant Program in April. The $1-million program is aimed at Hartford's small businesses that may have difficulty obtaining funding from other federal or state programs, and focuses on those owned by women and people of color in Hart- ford's low-income neighborhoods. In May, Bank of America, Travel- ers and the city each contributed an additional $125,000, bringing total funds available to $1.375 million. More than 300 applications were received during the one-week appli- cation window, with a projected 160 grants between $5,000 to $10,000 being awarded this month. Among the applications received, 62% identified as being located in a low-income census tract. In addi- tion, 15% of applicants self-identified as being minority-owned; 32% self- identified as being woman-owned; and 17% self-identified as being both minority- and woman-owned. While it is too early to share other results, we will continue to monitor outcomes. The public health and economic crisis created by COVID-19 devastated many local small business owners, their employees and neighbors. While there is impact across our region, it is most pronounced among those who can afford it least — minority- and women-owned businesses in Hart- ford's lowest-income neighborhoods. Small business is integral to thriv- ing neighborhoods, no matter where you work or live. But by working together, we can support those that have been left behind before and during the COVID-19 pandemic. Calvin Vinal is president and CEO of Capital for Change; Erika Frank is senior community investments officer at the Hartford Foundation for Public Giving; Fernando Rosa is president and CEO of HEDCO Inc. BIZ BOOKS Better ways to manage work-induced stress By Jim Pawlak "HBR Guide to Managing Stress at Work" (Harvard Business Review Press, $19.99). Who doesn't feel stressed at work these days? Do more with less. Priorities and deadlines rearranged. Voicemail. Email. Reports. Meetings. Add the unknown what's-next effect of COVID-19 to the list. The information in these 14 HBR essays won't help you eliminate stress but will help you un- derstand its triggers and mitigate its effects. Here are highlights: All of us are susceptible to attention deficit trait (ADT). The more we're ex- pected to do, the more over- whelmed we feel. Interrup- tions exacerbate the ADT problem. We operate in a constant state of stop-that- do-this, especially when we are working at home. Creativity and the ability to think through problems and potential solutions diminish. What to do? Interact with those who have positive attitudes. Their do-it approach reduces negative thoughts. Use them as how-to sounding boards. Positivity wakes up the brain's "executive center responsible for decision making, planning and information prioritizing." Organize ADT work- arounds. Write down everything in front of you at the beginning of each day including meetings/ scheduled calls. Then em- ploy OHIO (Only Handle It Once) to whittle down your list. Decide what must be done (act, save for later, throw away). Prioritize the acts. Time segment your calendar. Use 35-minute segments to work on each of your "acts." Send calls to voicemail, turn off the email ping and literally put a "do not disturb" sign on the entrance to your workspace to minimize interrup- tions. Use a 10-minute break after com- pleting an act to think about the next act. At day's end deal with voicemail, return calls and respond to emails. To recharge your brain and relax, leave work behind by going outside for your lunch break. If you have lunch with colleagues, steer clear of work topics. Takeaway: Organization, priori- tization and "hitting pause" reduce stress. Jim Pawlak Various studies have found that cities with more locally owned businesses tend to have stronger social networks, more engaged citizens and better success in solving local problems.

• Cover