In economic and business news, large corporations typically occupy an oversized portion of the landscape.
Layoffs at Amazon, for example, spur commentary from national media outlets; stock market results are reported daily; and when the average CEO compensation at an S&P 500 corporation is revealed to be $14.8 million, it sparks conversations about wealth inequality.
Yet while major companies grab much of the attention, small businesses form the backbone of the economy. In Washington, more than 99 percent of employers are classified as small businesses, and they employ slightly more than half the state’s workers. Nationally, small businesses account for approximately 47 percent of workers.
Therefore, it is encouraging that Clark County is regarded as friendly for small businesses. A new study from SmartAsset, a financial technology company, ranks the county as having the fifth largest small-business presence in Washington.
The top four in the rankings are San Juan, Jefferson, Whatcom and Kittitas counties. Notably, those four are much smaller than Clark County, which ranks fifth among Washington’s 39 counties with more than 500,000 residents. Whatcom County, home to Bellingham, has a population of 230,000; San Juan, Jefferson and Kittitas counties each have fewer than 50,000.
For a county in a metro area — which is more likely to attract large manufacturers or corporate hubs — retaining a strong small-business community is a significant feat.
As John McDonagh, president and CEO of the Greater Vancouver Chamber, told The Columbian: “The benefits to small business in Clark County over others likely include the tremendous growth in population, not only in Clark County but in the entire metro area. With that growth, we’ve seen a significant increase in congestion, and that bodes well for local businesses because consumers are not as willing to venture across the river to avoid the sales tax. Also, with the growth has come a commensurate increase in the number of businesses.”
Locally owned businesses are crucial to the economy and to a community’s sense of self. When consumers shop at a big-box store that has a national profile, state and local sales tax is collected and local employees are supported, but the profit gets sent to a far-off headquarters for a company that pays corporate taxes in its home state. In contrast, when consumers patronize a locally owned store, the sales tax and employee wages remain in Washington, and so do the business taxes and the salary for a locally based proprietor.
Keeping Clark County attractive for small business will require some work, however. In April, the Greater Vancouver Chamber hosted a meeting of local business owners to address growing crime rates. An informal survey found that of 60 proprietors, 41 reported that their businesses had been vandalized. Homelessness and a breakdown of societal norms have caused problems for shop owners — and therefore their customers.
As The Columbian wrote editorially: “Cleaning up neighborhoods and business districts is essential to reducing both violent crimes and property crimes. Various studies have shown that a sense of community results in lower crime rates. In other words, when it comes to crime, we’re all in this together.”
That knowledge will be essential to helping existing businesses prosper, attracting proprietors from outside the area and encouraging entrepreneurs to start a company. In the process, it will be essential to strengthening the backbone of our local economy.
