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Main Spotlight: Results from the Small Business Census Pilot
The storefronts of Colville, Washington’s Main Street offer a glimpse into the demographics of small business owners. Photo courtesy of Colville Together.
In 2020, Main Street America and the Brookings Institute released research focused on understanding, sustaining, and investing in the hyperlocal strategies that are working to bring economic growth and equity to increasingly diverse and dynamic rural areas. In the process, the Research team realized that little is understood about the backgrounds or identities of small business owners in major metropolitan centers, and even less in smaller cities and more rural places.
In an effort to bridge this knowledge gap, Main Street America launched the Small Business Census pilot project this past summer to learn more about the small businesses that call Main Street districts home and build a baseline understanding of the degree to which Main Street economies are inclusive of the populations in their surrounding communities. I had the honor of supporting the development and launch of this project as Main Street America’s Inclusive Economic Development Intern.
Launching the Census
The overarching purpose of the pilot was to determine the feasibility of implementing a census-type approach to cataloguing the number and diversity of businesses in Main Street communities, and to understand whether and how this type of data collection could work on a broader scale. The pilot process allowed the Research team to test out multiple methods to gather business and business owner information, and identify potential pitfalls the team might encounter in future data gathering efforts. Additionally, the team saw this project as an opportunity to develop tools and benefits for local program participants, such as outreach materials, report templates, and embeddable maps that provide tangible resources for every stage of the census project.
The team utilized existing member data to develop a short-list of potential communities to participate in the pilot based on a variety of factors, such as geographic location, population size, and known demographic information. We were particularly mindful to ensure that this short-list, and the resulting cohort of participating communities, were at least somewhat representative of the diversity of the MSA network. I utilized my skills as a community organizer to reach out to local Main Street managers to present this opportunity and gauge their interest in participating. In the end, nine communities signed on to participate: Colville Together (Colville, WA); Eureka Main Street (Eureka, CA); Hopewell Downtown Partnership (Hopewell, VA); River District Association (Danville, VA); Port Washington Main Street (Port Washington, WI); Denison Main Street (Denison, TX); Ruston Main Street (Ruston, LA); MainStreet Oceanside (Oceanside, CA); and Brush Area Chamber of Commerce (Brush, CO).
The pilot ran in two phases, enabling the Research team to field test, evaluate, and make small adjustments in order to improve the data collection process. Local Main Street leaders promoted the census to business owners in their districts through digital channels and in-person visits. The census gathered basic business information such as the year the business was established and its industry type, ownership structure, and number of employees; as well as identifying characteristics of ownership such as the business owner’s racial/ethnic identity, gender identity, city of residence, etc. The census also asked business owners to drop a pin at their business location using Geographic Information System (GIS) software, which the Research team used to create a layered map that Main Street managers could embed on their organization’s website to serve as a business directory.
Initial Results
Four communities participated in phase one of the census pilot, and another five in phase two. Each community’s census collected responses for 3-4 weeks. At the time of writing, the phase one communities’ censuses are closed and data has been collated, and phase two are nearing completion. Each of the phase one communities received 30-50 responses from local businesses.
Comparing the phase one census respondents’ racial and ethnic makeup to local demographic data revealed some interesting initial findings related to the business environment of each community. For example, results from the River District Association in Danville, Virginia where the population is 51 percent Black-identifying, showed that 27 percent of businesses identified as Black-owned. There was also representation of Native or indigenous business owners; of the 151 responses in phase one, five businesses identified as Native or indigenous-owned. And in Hopewell, Virginia, where the population is 1 percent Asian/Pacific Islander, the census captured that 6 percent of businesses are Asian/Pacific Islander-owned.
We also see evidence that Main Street businesses are often owned by local residents, families, and women: In the phase one data, 58 percent of Main Street businesses are locally-owned, 35 percent are family-owned, and a whopping 60 percent are women-owned. The data also showed a presence of home-based businesses, indicating that the influence of Main Street organizations as drivers of economic vitality extends beyond their district boundaries.
In the phase one data, close to 70 percent of Main Street businesses are run either solely by the owner, or by a staff of only 2-4 employees. This is evidence that Main Street small businesses are exactly that – small! And finally, the data collected indicated that a majority of businesses have been established in 2010 or later, signifying strong community resiliency despite the economic hardships of the last decade.
Takeaways
Beyond the data itself, the research team learned several key lessons from the pilot process itself. Most heartening was the positive response that we received from Main Street managers who were eager to learn more about their Main Street districts and form stronger bonds with their business owners. Relatedly, two of the nine participating districts requested Spanish-language census and promotional materials in order to make this opportunity fully accessible to the local Hispanic/Latinx community.
One of the challenges faced during the pilot process was addressing the concern expressed by some Main Street managers about collecting demographic information from small business owners and evaluating it against local demographic data. Some managers expressed apprehension that this objective—which was included in the promotional materials and terms of the census—would either be an immediate draw or aversion for some business owners. Despite our efforts to position the census project goals and individual demographic questions in a thoughtful way that highlighted their importance while accommodating privacy, asking these questions may have affected the number of business owners that opted into the project. Understanding diversity and inclusion in the Main Street network is an imperative highlighted in the new Main Street America Strategic Plan. Further iterations of this work will have to continue to confront this challenge.
Still to Come
The initial results from the phase one communities are exciting to see, and the Research team is looking forward to analyzing the data received from the phase two communities. With the success of the census pilot, Main Street America now has a better understanding of the demographics of local Main Street programs’ businesses and their impact on fostering diverse and inclusive downtown economies, as well as valuable insight into the most effective way to gather data on small businesses and small business owners throughout the national network.
With the summer Small Business Census Pilot wrapping up, the MSA Research team is eager to think through other new opportunities to gather information about small business owners and the inclusivity of Main Street economies. If you would like to work with the Research team to learn more about the small business owners in your community, send them a note here.
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