Maximize ARPA Funds to Support the Local Small Business Community
The small business community has been hit hard by the sudden change in consumer habits due to the COVID-19 pandemic. Entrepreneurs and small businesses are at the core of the American economy and play a significant role in innovation, employment, and economic resilience. COVID-19 has been particularly harsh to minority-owned companies due to difficulty accessing funding. Using federal funds to support small businesses is crucial, especially with a racial wealth gap that needs to be closed. Fortunately, the American Rescue Plan Act of 2021 (ARPA) offers leaders the financial resources to make strategic investments for an equitable recovery strategy so more small businesses can launch and thrive.
One of Public Ventures' portfolio companies has streamlined accessing information, program compliance, and harnessing the power of the small business ecosystem to help cities build a better business community. By leveraging ARPA Fiscal Recovery Funds to support small businesses, the emerging technology can help cities create a more progressive and productive economy that will have an easier time rebounding from future recessions.
Some cities have already started using the model to help small businesses succeed and have gained unprecedented feedback from users and the small business community. Kansas City, Missouri, launched their new BizCare model in June 2020 when they had to change their operations due to the pandemic. The model helped them pivot to remote work and quickly developed a survey to learn about their small business community. Using the platform, BizCare was able to assist over 4,000 businesses and process an increase in business formations and license renewals. They are also using the platform to analyze the impact of COVID-19 on women and minority-owned firms, which have struggled to access loans during the health crisis. In the past year, the platform and BizCare helped black-owned small businesses access almost $2 million in federal relief funds.
Long Beach, CA developed its own BizCare model which has assisted 771 business owners, visited 956 business sites, answered 1,029 emails, took 6,188 calls, and engaged 24 community organizations in one year. They have also implemented programs to bridge the digital divide and ensure that underserved areas can access the internet, printers, and scanners to enable people to submit forms and applications. And with new funds potentially being awarded through ARPA, they plan to continue growing and ensuring an equitable distribution of resources.
A noticeable uptick in small business formations is happening. Local governments must be educated on the key strategies to promote and support small businesses throughout their entrepreneurial journey resulting in more equitable, inclusive, and resilient communities. ARPA is ready to provide funds with substantial flexibility for each government to meet local needs to impact their economies and create more growth opportunities.
Elevate Inclusion and Equity
From a city's perspective, there is much to gain from elevating inclusion and equitable municipal procurement. Scale-ups are essential for job generation and innovation, but some parts of the population are under-represented; thus, promoting entrepreneurship in disadvantaged communities is paramount. The platform offers self-serve tools to help small businesses connect with city programs and navigate complex processes. Inclusive procurement and supplier diversity programs foster economic empowerment, which has a trickle-down effect that improves education, home investment, capital access, and wealth creation. These inclusive practices facilitate local economic growth, help BIPOC and women-owned firms (key populations mentioned in ARPA legislation) thrive and grow, make the system more efficient, and attract and assist qualified new businesses to become potential partners. In addition, the platform allows city staff to access insights on city spending with small businesses, contract outcomes, and certifications to identify opportunities for capacity building.
Reduce Barriers for Entry
Making access easier allows for more opportunities for all citizens to maximize small business services in their community. Digitizing applications is a good start, and ARPA allows for technology investments that support impacted populations, removing burdensome requirements and improving transparency and access to information. The platform helps onboard businesses, guide vendors through administrative processes, and connect entrepreneurs with support organizations.
Promote Technical Assistance
Technical assistance for small businesses should be a significant focus for cities. Investing in programs for small businesses and entrepreneurship skill-building will educate them on how to grow and access capital. Linking small business owners to existing partners like the Small Business Development Centers (SBDC) provides them with assistance tailored to their local community and individual needs. SBDC can be especially helpful to businesses in underserved areas that may find resources challenging to access or be unaware of services available to them. The Small Business Administration (SBA), which oversees the SBDC, has launched a Community Navigator Pilot Program to engage small businesses in under-resourced communities. This program features a "hub" at the center of a network of "spoke" organizations (community advocates to work with small businesses) for technical assistance.
Leverage Technology
Many entrepreneurs and small business owners require digital services and resources for launching, day-to-day operations, and growth. It is important to invest in digital tools that make it easy for businesses to access information, form growth plans, apply for programs, and communicate with city staff. The platform provides an administrative dashboard that centralizes key information for small businesses and coordinates support for entrepreneurs among the community's ecosystem of partners. The technology also features a centralized dashboard for city staff to manage numerous forms and applications to maintain a streamlined workflow. KC BizCare staff served four times as many businesses as before using this technology. Digital equity and inclusion can be improved by increasing broadband access, enabling a city's digital presence to be more user-friendly. Additionally, providing these digital tools can improve the small business experience by making it easier for small businesses to get through processes like licensing, permitting, or procurement.
Implement Data Tracking
Accurate real-time data is essential to aid in advocating for funding. Tracking small business outcomes and demographics will allow city leaders to understand better the key indicators that impact the local business community. The technology enables city staff to see the history of vendor interaction with city agencies, as well as capabilities, certifications, references, and past performance.
Collect Feedback
There is no one-size-fits-all solution to meeting the needs of each owner in the local small business community. But getting to know the community is the first step in understanding their needs better. Feedback from community meetings and online surveys will provide a more precise plan to meet the needs of small businesses, positively impact the local economy, and create more opportunities for growth.
Investing ARPA funding in this platform will allow each city to activate the recommended strategies listed above. This technology is a proven solution that will provide a better experience for city leaders and local small businesses through:
Engagement: Get small businesses the information they need
Compliance: Help small businesses maintain compliance
Certification: Accelerate the certification process
Support: Make outreach to small businesses more efficient
Management: Centralize the management of small business information
Performance: Track the relationship between small businesses and a city
Reporting: Track equity and inclusion data
Revenue: Automate notifications to businesses for annual licensing fees
ABOUT QWALLY
Qwally is an intuitive, cloud-based software platform that helps small businesses navigate local government contracting. Launched in 2018 to help connect city governments with local small businesses, the technology promotes better engagement between cities and their local small business communities to make public spending more equitable.
ABOUT PUBLIC VENTURES
Public Ventures partners with local governments and technology companies to align public policy priorities with innovative technology solutions to solve complex problems and social challenges.
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Sources:
Welcome to BizCare (2021). Accessed December 3, 2021 from City of Kansas City, Missouri. Improving Procurement Processes to Promote Economic Equity (2021). Accessed December 3, 2021, from Living Cities.
A year in, BizCare continues to support Long Beach small businesses (2021). Accessed December 3, 2021, from Long Beach Business Journal.
Leveraging ARPA Fiscal Recovery Funds to Support Small Businesses (2021). Accessed December 3, 2021, from National League of Cities.
Start-Up Boom in the Pandemic Is Growing Stronger (2021). Accessed December 3, 2021, from The New York Times.
Community Navigator Pilot Program (2021). Accessed December 3, 2021, from U.S. Small Business Association.