findings of the 2014 independent business survey
DESCRIPTION
In January 2014, the Institute for Local Self-Reliance and the Advocates for Independent Business coalition surveyed 2,602 independent business owners across the country. This presentation presents the survey's key findings. It includes new data on the impact of "buy local" campaigns; a ranking of the biggest challenges facing small businesses, from online competitors to the difficulty of obtaining financing; and information on the public policy changes that small business owners believe would most help their businesses.TRANSCRIPT
HISTORY OF THIS SURVEY
HISTORY OF THIS SURVEY
2008: 1,382 businesses (mostly retailers)
Headline:
ilsr.org/surveys
WHO WE SURVEYED IN 2014
WHO WE SURVEYED IN 2014
Total employees:
Average age:
Geography:
2,602
Half are non-retailers
30,049
13 years
all 50 states & D.C.
Sectors:
Number:
Average # of employees: 11.5
3.0Median # of employees:
< 5 years old:
> 50 years old:
21%
10%
WHERE THEY ARE LOCATED
PARTNERS
Advocates for Independent BusinessAIB
UNOFFICIAL FINDINGS
Independent business owners refuse to be pigeon-holed (“Other”)
Independent business owners have a lot to say (517 comments! Oh my!)
SALES GROWTH
SALES GROWTH
Average:
Median:
5.3%
4.0%
All Businesses
SALES GROWTH
All Businesses
SALES GROWTH
“same-store sales”
Retailers Only
Annual:
Holidays:
2.3%
1.4%
LOCAL FIRST
LOCAL FIRST
Which cities count as “Local First” cities?
Must have a year-round visible public-education campaign that highlights the benefits of choosing locally owned, independent businesses
LOCAL FIRST
LOCAL FIRST
LOCAL FIRST
LOCAL FIRST
LOCAL FIRST
LOCAL FIRST
LOCAL FIRST
"The American public is absolutely growing more aware of the 'Buy Local' movement and better understanding why it's important." — small business owner in New Hampshire
"This was a good year for my bookstore. Shop Local and the improving economy had a good effect." — bookstore owner in Wisconsin
The Local First campaign is "significantly contributing to the stability of independently owned businesses here." — retailer in North Carolina
CHALLENGES
CHALLENGES
Survey respondents were asked to rate how significant various challenges are to their business on a scale of 1 to 5, with 1 being not at all challenging and 5 being extremely challenging.
CHALLENGES
Top Challenge: Competition from large internet companies
49% of all respondents rated it a 4 or 5
69% of retailers rated it a 4 or 5
CHALLENGES
Top Challenge: Competition from large internet companies
49% of all respondents rated it a 4 or 5
69% of retailers rated it a 4 or 5
(Only 40% of retailers rated “competition from large brick-and-mortar companies” as a 4 or 5.)
CHALLENGES
"In 2013, the challenge to compete with internet-only shops who offer goods below [cost] became even more significant." — fabric store owner in Oregon
"Amazon doesn't care if they lose money on books, as they will make up the [difference] in other areas." — bookseller in Florida.
CHALLENGES
CHALLENGES
CHALLENGES
✴ Escalating rents
✴ Weather
✴ Government shutdown
CHALLENGES
POLICY PRIORITIES
POLICY PRIORITIES
POLICY PRIORITIES
POLICY PRIORITIES
"Too many subsidies are being freely offered to large retail chains that small businesses could use more efficiently to produce jobs in the community." — local business owner in Pennsylvania
"One of the largest companies, Amazon, gets a sales tax rebate from one of the poorest states, Kentucky. I think Amazon will continue to be wealthy, and Kentucky will continue to be poor." — bookseller in Kentucky
POLICY PRIORITIES
Level playing field(all respondents)
POLICY PRIORITIES
Fertile environment
✴ bring more development downtown✴ expand the availability of small business loans✴ provide more assistance to startups✴ streamline regulations and red tape
(<5 years old)
Level playing field(all respondents)
POLICY PRIORITIES
✴ Address rising rents
✴ Local purchasing preferences
✴ Land use & transportation
✴ Minimum wage
POLICY PRIORITIES
POLICY PRIORITIES
"Large corporations have the money for lobbying to influence government laws, rules, and regulations, which quite often have a negative impact on small business." — retailer in Michigan
"We recently had our own Chamber of Commerce lobby the town to allow bigger roadside signage to tempt a big-box development." — retailer in North Carolina
"The reason small local businesses are not counted is that there is no effective lobbying group. Local First campaigns should concentrate on developing a lobby with money and a voice."— restaurant owner in Utah
SURVEY IMPACT
Local First: Documenting Outcomes
Media: Telling the Indie Story
Strategy: Informing our Work
ilsr.org/surveys
Facebook shares Graphs
Survey reports & press releases