Table of Contents
Cover Story:
Small Business is BIG Business
In Rockland, small businesses are the engine that drives the economy
RBD Round-Up:
How'd He Do That?
The interesting rise of Mal McLaren
RBD Business Survey
How do you communicate?
DEPARTMENTS:
Economic Round-Up
• The Smart Investor
Your portfolio is doing great, so why rebalance?
• Economic Viewpoint
The U.S. Attraction Factor
Business Round-Up
• Down, But Not Dirty
The best way to handle company layoffs is to provide options
• Marketing By Design
The top 15 campaigns of the last 100 years. You know them all, but why?
• Receivables
One of the largest headaches for small businesses
Ask The Experts
• Talking Taxes
• Payroll: Key Issues
• Workplace Hotline
Invest in Your Community
• Where's the Fire?
Rockland Volunteers - increasing efforts and awareness
Odds & Ends
• The Last Minute
• Rockland Newsmakers
Dedicated Section:
Rockland Business Association:
The President’s Desk
New Healthcare Tax
will hurt small and midsized businesses. Here's how.
RBA/United Way Golf Outing
The Rockland Open: Monday, May 21st
RBA Happenings
• Committee and Council Info
• Calendar of Events
• New Members
Small Business is BIG Business
In Rockland, small businesses are the
engine that drives the economy.
By Adrian Burke
While each of these Rockland companies has a very different mission and focus, what is exactly the same about each is that they are small businesses and what they do, make, built, or provide, is the engine that drives the local economy.
The Office of Advocacy defines a small business for research purposes as an independent business having fewer than 500 employees. That’s a huge number for Rockland, which has the distinction of being populated by very small businesses; more than 75% of the county’s businesses have 10 or fewer employees according to the Rockland Business Association. In fact, many of Rockland’s largest companies, employ fewer than 500 firms.
And while large corporations, such as Avon, Wyeth, and Verizon Wireless, bring in enormous receipts in terms of taxes, and provide salaries for thousands of workers, it’s the aggregate successes of small businesses like yours that attracts those large firms in the first place.
We might be talking micro-business, but their impact is huge. Small firm establishment births are the most important factor propelling growth in gross state product, state personal income, and total state employment.
As the economy continues at a robust pace, with low unemployment, the County becomes an attractive place to live, work, and play. This brings in traffic, causes controversy with open space vs. development issues, and ramps up home prices—all of which make it hard for some small businesses to succeed.
According to Marc Golovan, retired Senior Economist at JP Morgan Chase, “Rockland drives the economy of the west bank of the Hudson.” With small business on the upswing in Rockland, the future of the Hudson’s west bank looks promising.
Juliet Stewart thought a future working for herself would be promising—and it has been. Stewart, an internationally known make-up artist, opened her business on Broadway in Nyack, offering esthetician services, face and body treatments, and make-up application. She does weddings and special events, too.
“I thought it would be a little easier than it was, but I would not trade the experience,” says Stewart, who worked from some beauty giants, including Lancome, Estee Lauder, and Saks. “It’s not for everyone, but if you have the passion, the desire, and the drive, you can succeed.”
A recent study by the Office of Advocacy of the U.S. Small Business Administration, confirms what Rocklanders have known all along: small business is big business. “This study confirms the importance of small startups for the economic well-being of every state,” said Office of Advocacy Chief Economist, Dr. Chad Moutray. “Now more than ever, state policymakers should be aware of how their decisions affect small business. Creating an environment that values entrepreneurship and risk-taking is sure to increase economic growth, personal income, and employment.”
Here in Rockland, where the latest Census shows 9,068 private non-farm firms employ 103,241 people, small businesses account for more than half of the county’s workers. Most businesses tend to be service providers, with the lion’s share in healthcare and related services. With two large hospitals in the county, Nyack Hospital at one end, and Good Samaritan at the other, it’s no surprise healthcare accounts for nearly 20% of the small businesses.
Small firms also tend to hire a greater number of older workers and people who prefer to work part-time as well as providing an entry point into the economy for minority and female-owned businesses.
Making it Work
Two-thirds of new employer establishments survive at least two years, and 44 percent survive at least four years, according to a recent study. These results were similar for different industries. Despite conventional wisdom that restaurants fail much more frequently than firms in other industries, leisure and hospitality establishments, which include restaurants, survived at rates only slightly below the average. Earlier research has explored the reasons for a new business's survivability. Major factors in a firm’s remaining open include:
• An ample supply of capital
• Being large enough to have employees
• The owner’s education level
• The owner's reason for starting the firm in the first place, such as freedom for family life or wanting to be one’s own boss.
George Slavis’ small business survived because he believed in the community, provided a needed service and product, and the community then supported him, Slavis took a simple concept - supplying truck tires to accounts across the eastern seaboard, and turned in into a local powerhouse, Eastern State Tire, that today provides tires and automotive service to everyone from car owners and local service stations to car dealers and rental agencies throughout a five-county area. Their retail business draws customers from throughout Rockland, Orange and Bergen, as well as Manhattan.
More than a decade ago, Slavis’ consolidated all his businesses into one location at 210-230 West Nyack Road. “We consolidated in one place with essentially three businesses. And we didn’t lose any customers because of it. At that point, our reputation and solid service spoke for itself,” he says. “The strength of our business has always been our customers. We have customers who have been with us since we opened in 1978.”
If you’re looking for another prototypical small business, look no further than Howie Barnett and Silver City on Route 59 in Spring Valley. Silver City has been in Rockland for more than 50 years, started when Jack Barnett, Gene Wexler and Harold Silver, three brothers-in-law who just wanted to start their own small business, opened up shop in 1954. The trio eventually moved the business to Route 59 in 1962, which was then essentially a “dirt road.”
In recent years Rockland County has had a net gain of more than 1000 jobs even with the net loss of a few large corporations. Small businesses are most often able to adapt quickly to changing markets with innovative and specialized services.
In a recession, larger companies will tend to downsize their workforce while small businesses will look for ways to adapt their already small employee base to keep the business running.
The business grew right alongside Spring Valley and Rockland. As the population changed, Silver City concentrated on higher end appliances and electronics, yet never lost their small-town, customer-centered feel. “We have second and third generation customers who still continue to shop with us after they’ve moved out of town,” says Barnett.
“We’ve managed to thrive and survive for over 50 years because we love our town and our community and we are appreciative of what we are and what we’ve become.”
Small businesses benefit the community in many ways, more than providing jobs and tax receipts. Many local volunteer organizations rely on these business people to help staff their programs. The local fire department and ambulance corps are a great example.
Fast on their feet
In recent years Rockland County has had a net gain of more than 1000 jobs even with the net loss of a few large corporations. Small businesses are most often able to adapt quickly to changing markets with innovative and specialized services. Small business owners and operators often know their customers personally and will usually deal with other vendors and services on a local basis. In a recession, larger companies will tend to downsize their workforce while small businesses will look for ways to adapt their already small employee base to keep the business running.
But owning and running a small business is not without its thorns. Rockland has, in many ways, become a victim of its own success. As the economy continues at a robust pace, with low unemployment, the County becomes an attractive place to live, work, and play. This brings in traffic, causes controversy with open space vs. development issues, and ramps up home prices—all of which make it hard for some small businesses to succeed.
Mal McLaren, of MG McLaren Engineering says the county is a tough sell sometimes for prospective employees. There are issues of affordable housing, and it’s tough for workers and would-be workers to get here to West Nyack. “I’ve had potential employees ask me what subway line gets them here,” says McLaren.
Small Business, Big Worries Sometimes
Robert Riccardelli owns Times Square Lighting which has 50 employees. Times Square Lighting, a light manufacturing business, has been in Stony Point for 50 years, but Riccardelli thinks it might be time to leave.
Riccardelli thought high taxes would be what eventually drove his business out of the county, but he says he feels the lack of response on the part of the county when it comes to small business issues is what may eventually seal Times Square Lighting’s fate.
“Over the years, there have been many, many issues which have frustrated me,” says Riccardelli, “mainly because I don’t feel like the powers that be are really listening and sometimes don’t provide the kind of support a small business needs to survive and thrive in the county.”
Times Square Lighting is the quintessential small business success: An internationally renowned business which has been the leading manufacturer of theatrical lighting and accessories for over 70 years, the family-owned firm expanded the business to include products geared toward the architectural and display industries in a bid to meet the demands of its customer base. They employ local residents in a 33,000 square foot space that has been in the same location since 1968. Their clients range from The Elvis Birthplace Museum to the Hard Roc Café to a Burberry retail store.
Mr. Riccardelli was particularly upset, he says, by the rezoning of a light industrial area adjacent to his business into a residential parcel that will eventually be developed into a senior living development. Riccardelli, along with residents in Stony Point, voiced concerns about the drainage and other issues in the $14 million development, called Hudson Grande, but the Town Board approved the granting of a special use permit for the project.
Times change, yes, but the needs and wants of small businesses such as Riccardelli continue to be the same, as evidenced by those small businesses RBD polled: they want government to be responsive, to support small business with programs and resources that will help them grow in the county, and to tackle issues such as the rising cost of healthcare.
Is Rockland Business Friendly?
Ricardelli wonders how friendly Rockland really is to commercial property owners, like himself, and small business owners. "If I was a small business considering coming to Rockland, I might get a little handout," he says. "But if I was a huge company, they’d roll out the red carpet."
The ever-shrinking industrial and commercial base has caused his taxes to rise to the point where he finds it's not good business to stay in business here. "What am I getting for my money," he asks. "I get offers all the time from towns in the South East," he says. "They keep saying, 'come down here. Look, manufacturing is hard in the U.S., even harder in New York, and it's getting that way here, too." RBD
Small Business Week honors the country’s best
The U.S. Small Business Administration honored America’s top entrepreneurs – including Rockland’s own Gene Cortes—and named the National Small Business Person of the Year – at national ceremonies in Washington, D.C., during Small Business Week, April 23-24. Each year, the two-day celebration honors more than 100 outstanding small business owners from across the nation. They ranged from a sausage maker and wine café, to a beekeeper and dog salon.“The SBA is proud to honor the entrepreneurial spirit of the men and women who have played such a key role in the success of the economy and the prosperity of our nation,” said SBA Administrator Steven Preston. “I am proud to represent an agency that touches so many people’s lives, not only helping them realize their dreams, but doing so in a way that provides jobs, expands our economy, and supports innovation in our country.”
Every president for 44 years has issued an annual proclamation celebrating Small Business Week. State award winners and recipients of the Champion and other special awards are nominated by local trade associations, chambers of commerce and business organizations. During Small Business Week, award winners will meet with top administration officials, members of Congress and leaders of national business organizations.
This annual celebration honoring the nation’s leading small business entrepreneurs is cosponsored by SCORE, “Counselors to America’s Small Business.” For more information on Small Business Week events, including award winner bios, visit www.sba.gov/sbw.
RBA helping to secure avenues of capital for small business owners
The Rockland Business Association, RBA, is the voice of small business in the county, and in January, the RBA signed agreements with the U.S. Small Business Administration and the New York Business Development Corporation, which will make it easier for small businesses in the RBA to obtain capital.“The RBA, the U.S. Small Business Administration and the New York Business Development Corporation share something in common - a mission to help small businesses grow. These partnerships will give our members greater flexibility in accessing capital," RBA CEO and President Al Samuels said.
The loans offered through the two organizations are at competitive, and sometimes discount, interest rates and can be as much as $4 million. The typical loan garnered is around $100,000. Last year 144 Rockland County businesses received $18,757,200 in SBA loans. With the RBA's new agreement that number is expected to increase.
Because the organizations offer a guarantee on the loans to qualifying applicants, business owners are often able to obtain loans that they could not get in the regular marketplace. The cooperative agreement will streamline the application process for RBA members.
NYBDC was created by an act of the New York State Legislature in 1955 and is a private corporation funded by 45 New York State commercial banks and thrift institutions. The SBA was formed in 1953. The New York District Office of the SBA, covering 14 downstate counties including New York City and Long Island, loaned out over $600 million in loans last year alone. There are 68 district offices of the SBA.
USBA and U.S. Postal Service announce internet tools for entrepreneurs
The U.S. Small Business Administration and the U.S. Postal Service have rolled out a new Internet tool for small business owners, designed to deliver business solutions to entrepreneurs.Delivering Success, an online video-on-demand resource of successful entrepreneurs, is a nationwide cosponsorship with the Postal Service to provide small business owners with invaluable information through video interviews that are both accessible and convenient for entrepreneurs.
The Delivering Success video interviews the experiences of successful entrepreneurs from around the country, offering guidance and sharing insight on the road to success. The video interviews provide key information on the ingredients of small business success, including an overview of business basics, resources to help with business plan development, small business friendly financing, business promotion, and planning & research.
The premier launch of Delivering Success took place in Washington, D.C., with Warren Brown, owner of CakeLove bakery and Love Café, and host of the Food Network’s Sugar Rush. Brown is one of the highlighted small business owners featured in the video interviews. Brown shares his successes and personal take on the entrepreneurial spirit.
“Small businesses are the backbone of the nation’s economy, and the SBA wants to do everything we can to encourage entrepreneurship and provide business solutions and resources that are readily available,” said SBA Administrator Steven C. Preston. “That is why we have partnered with the U.S. Postal Service highlighting successful business owners to share their wealth of knowledge and business experience.”
Entrepreneurs have round-the-clock access to the video interviews, which are the ideal start-up tool for budding entrepreneurs and business owners. Other highlights of the Delivering Success video interviews include a business reality check, techniques to take a business to the next level and the top 10 tips to get a business started and keep it growing.
Small businesses make up more than 99.7 percent of all employers. They drive the U.S. economy and generate more than 50 percent of the nation’s nonfarm private gross domestic product (GDP). Over the past decade, small firms created between 60 and 80 percent of the net new jobs in our economy.
How important is your small business?
According to the SBA, small firms are crucial to the continued health of the U.S. economy. Small firms...• Represent 99.7 percent of all employer firms.
• Employ half of all private sector employees.
• Pay more than 45 percent of total U.S. private payroll.
• Have generated 60 to 80 percent of net new jobs annually over the last decade.
• Create more than 50 percent of nonfarm private gross domestic product (GDP).
• Supplied more than 23 percent of the total value of federal prime contracts in FY 2005.
• Produce 13 to 14 times more patents per employee than large patenting firms. These patents are twice as likely as large firm patents to be among the one percent most cited.
• Are employers of 41 percent of high tech workers (such as scientists, engineers, and computer workers).
• Are 53 percent home-based and 3 percent franchises.
• Made up 97 percent of all identified exporters and produced 28.6 percent of the known export value in FY 2004.Sources: U.S. Bureau of the Census; Advocacy-funded research by Joel Popkin and Company (Research Summary #211); Federal Procurement Data System; Advocacy-funded research by CHI Research, Inc. (Research Summary #225); Bureau of Labor Statistics, Current Population Survey; U.S. Department of Commerce, International Trade Administration.
