Connect City Governments With Local Small Businesses

ABOUT 

One of Public Ventures' portfolio companies has streamlined the process for supporting new small businesses, determining program eligibility, and engaging program partners to help cities and counties support their business communities. The cloud-based software platform 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.

HOW

• 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

POLICY

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. The 2021 Menino Survey of Mayors recently released by Boston University’s Initiative on Cities (IoC) asked 126 mayors in U.S. cities with more than 75,000 residents about their most pressing challenges in a post-COVID economy and how they plan to use ARPA funding to support their small businesses community. The survey reported that 71 percent of the mayors believe supporting small businesses is crucial, of which 37 percent say their main focus is to ensure flailing businesses remain open. In addition, 23 percent want to assist new companies to launch, while 22 percent want to foster the growth of successful businesses.

OUTCOMES

The platform enables local governments to utilize strategies and data to promote and support small businesses throughout their entrepreneurial journey resulting in more equitable, inclusive, and resilient small business communities. According to the City of Mobile's Mayor, Sandy Stimpson, this is "the biggest single step in making the city the most business-friendly we've ever taken." 

RISK OF INACTION

Small businesses employ almost half the nation's private-sector workforce, 60 million people. They generate tax revenues that fund public safety, schools, parks, and other municipal services. Pre-pandemic, circa 2019, the Federal Reserve Bank of New York research showed only one in five viable small businesses had enough money to run everyday operations if they experienced a two-month revenue loss. Although the Paycheck Protection Program (PPP) supplied almost $700 billion to help small businesses adversely affected by COVID-19, many small firms remain in peril. A recent survey by The Institute for Public Policy and Economic Development reported that of the 160 entities surveyed, 86 percent reported reduced revenues due to COVID-19, with 24 percent of those reporting declines of between 90 and 100 percent in the period. About 58 percent said they had laid off employees permanently, without pay, and over 80 percent said they had sought financial assistance (i.e., PPP).

PV's platform identifies programs, confirms eligibility, and increases small business enrollment. Governments can meet the community's entrepreneurial needs to impact their economies and create more growth opportunities through this technology. 

PUBLIC PERCEPTION

Local businesses are at the heart of U.S. communities, and with mega-retailers on the rise, many cities have organized to back their local stores through “buy local” campaigns. Intuit surveyed 1,500 Americans in 2021 and discovered that 57 percent of consumers shop local to keep money close to home, and 38 percent of consumers support small businesses to feel connected to their community. And according to a 2021 study conducted by Fundera, small businesses donate 250% more than large businesses to community causes and generate 70% more local economic activity per square foot than big-box retail.

NEXT STEPS

STEP 1: Schedule a call

STEP 2: Schedule a demo of the platform

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.

Please click on the image below to download the PDF.