Worcester Business Journal

wbjournal.com | June 12, 2023 | Worcester Business Journal 21 Small businesses remain bullish for 2023 V I E W P O I N T E D I T O R I A L D espite economic headwinds, small business owners in Worcester and elsewhere are confi- dent in their abilities to manage their businesses through difficult times. According to new Bank of America research, business owners are feeling pressure around inflation and supply chain issues, but the majori- ty surveyed (76%) feel well-positioned for a strong year. Entrepreneurs are monitoring a handful of challenges to their business plans in 2023, express- ing the most concern around inflation, commodities prices, and a potential recession. However, more than half of business owners (56%) reported higher revenue in 2022 than in 2021, and the major- ity (65%) expect their revenue to increase in the next 12 months. Additionally, 82% of en- trepreneurs say they intend to obtain funding for their business in the year ahead, up from 70% last spring. Here are three of the most significant insights, trends, and obstacles businesses should be prepared to face this year: Labor: 52% of business owners say labor shortages are impacting their business, and 21% reported custom- er losses due to labor issues.ey are adopting new strategies to retain and attract talent. Over the past 12 months, 51% of business owners implemented addition- al perks and benefits. Growth: Entrepreneurs will need to be creative to grow their businesses over the coming year and tapping into the latest digital tools and resources can help; 80% of business owners digitally optimized their businesses last year by adopting new tools and technologies, and 49% of business owners plan to incorporate automation and artificial intelligence tools in 2023. Entrepreneurs are also using digital tools to help them stay organized, reach new customers, and implement sustainable busi- ness tactics. Setting the standard: e last three years have forced business owners to adopt a nimble mindset as they try to stay a step ahead. Entrepreneurs who are looking to expand their business operations over the course of 2023 should consider implementing the following prin- ciples of an adaptable business model: 1) Be flexible: Today's business owners are equally creative, optimistic, practical, and aggressive about the business goals they set and where their business is headed. Business owners should review their plans and remain open to reshaping their direction. 2) Be measurable: By setting specific and measurable goals, business owners will be able to determine the effectiveness of their strategies and identify areas where their plans can improve. 3) Be open to learning: Business owners who commit to learning new skills will be able to better adapt to new challenges. By connecting with fellow entrepreneurs and partners, entrepreneurs can gain valuable knowledge on how to better their business. John Sundborg is senior relationship manager for business banking in Worcester for Bank of America. BY JOHN SUNDBORG Special to WBJ A T H O U SA N D WO R D S B Y R A M Ó N L . S A N D O V A L Housing push needs local cooperation John Sundborg M assachusetts needs housing. A lot of it, and quickly. As one of her main efforts to alleviate the increasingly unaffordable cost of buying and renting housing, Gov. Maura Healey has prioritized building new homes throughout Mass. A key player in Healey's initiative is former Worcester City Manager Edward Augustus, who on June 1 was sworn in as state's first Cabinet-level housing secretary in three decades. Healey created the position and the Executive Office of Housing and Livable Communities to address a housing situation where the median price of a single-family home in the state now exceeds $600,000, according to the Warren Group. Augustus said his mantra to address the crisis will be "More, faster." While a number of factors impact the price of real estate, having more units come online will work to satiate some of the demand and, at least in theory, put downward pressure on rising prices. Unfortunately, building a significant amount of new housing has proven to be an uphill battle. Perhaps the most entrenched obstacle to new developments has been resistance by individual communities and citizen groups. is resistance is fiercest for larger-scale multifamily housing proposals, particularly ones with affordable housing. As WBJ Real Estate Insider Timothy Doyle writes in his feature column "Slow down" on page 8, elected officials and residents have opposed developments for any number of reasons, but the most common is they will change the community's character and put a strain on limited resources. Such efforts were successful in Millbury and Framingham in placing a moratorium on multifamily development, and similar sentiment caused Holden to fail to comply with a law requiring multifamily developments in MBTA communities. During his eight-year tenure as Worcester city manager, Augustus successfully pushed through major projects by getting just enough support from key business and community leaders, such as with the CitySquare downtown redevelopment and the $160-million Polar Park baseball stadium. It'll be interesting to watch him attempt to do this on a statewide level, having to convince individual communities of the benefits of allowing more housing within their borders. While no initiative will ever receive the full support of a community, Augustus will need a diplomatic approach, as NIMBY concerns shouldn't be overcome simply by ramming projects through the system. He will need to build local buy-in. e state government is showing a willingness to use the stick to spur more housing construction, as Attorney General Andrea Campbell has warned MBTA communities like Holden they may face civil action over their resistance to multifamily housing. e stick can be an effective tool to accomplish key goals, but we prefer they mix in the carrots. Local officials and residents need to understand the need for more housing – particularly affordable multifamily housing – and how it can improve their lives and the overall health of the state's economy and communities. Convincing them won't be an easy task, as resistance to new projects runs deep. Still, if Massachusetts is going to build "More, faster" it will go much better if we have our communities moving in the same direction. The above Editorial is the opinion of the WBJ Editorial Board. The Viewpoint column, the A Thousand Words cartoon, and the Word from the Web commentary represent the opinions of their authors and do not necessarily reflect the views of WBJ or its staff. WBJ welcomes letters to the editor and commentary submissions. Send them to bkane@wbjournal.com. W W

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