Economy tied to small businesses

SANDPOINT — If Idaho’s economy is to recover from the ongoing recession, it will be on the back of the state’s many small businesses, according to U.S Small Business Administration.

The USSBA, which works to aid, counsel, assist and protect the interests of small business, recently released a profile of Idaho’s business makeup. The report indicates Idaho is currently home to 38,596 small business owners who employ a staggering 97 percent of the state’s workers.

Idaho’s dependency on small businesses, which the government loosely defines as a business with less than 500 employees, makes their prosperity paramount to a general economic recovery, said USSBA’s Connie Marshall.

“Small businesses are the backbone of each state’s economy, as well as the nation’s economy,” Marshall said.

Bonner County has not been immune to the nation’s economic tumult, and more than a handful of the area’s small businesses have called it quits in recent months.

State or federal aid could help bring life to a number of struggling businesses in the area, but Marshall said attracting and maintaining a solid customer base is the key to long-term success.

“I think people should really think about shopping locally,” Marshall said. “Buy locally, eat locally, stay home, so that the money not only goes into the shop owner’s hands, but the people they employ.”

Despite the difficult times, Marshall said small businesses owners have a number of advantages over their larger and better funded counterparts.

“Small businesses are nimble. Generally, if they’ve done their homework they have cash reserves. They should be able to reduce inventory or slightly cut hours, but they should always increase their marketing. Never stop marketing, because that brings new customers,” Marshall said.

Marshall also advises small business owners to stay involved in community activities through volunteer work, chamber of commerce meetings or other social networks.

“With a small business, your word is your bond. You have to get your face out there so people actually know you,” she said.