{"id":436,"date":"2020-07-26T07:31:00","date_gmt":"2020-07-26T07:31:00","guid":{"rendered":"https:\/\/www.godaddy.com\/ventureforward\/?p=436"},"modified":"2021-05-04T17:10:30","modified_gmt":"2021-05-04T17:10:30","slug":"ventures-support-economic-resilience","status":"publish","type":"post","link":"https:\/\/www.godaddy.com\/research\/ventures-support-economic-resilience\/","title":{"rendered":"How Gilbert, Arizona, found economic resilience in 35,000 microbusinesses"},"content":{"rendered":"\n

As a 12-year-old, Jenn Daniels taught herself bookkeeping so she could help her father run his tool-and-die shop. Nearly 30 years later, she uses those skills as part of a side business she runs out of her Gilbert, Arizona<\/a>, living room helping entrepreneurs navigate the tricky shoals of local permitting, state licensing, tax filing, insurance and a string of other challenges.<\/p>\n\n\n\n

Daniels is qualified to help for an additional reason: She has been mayor of this 260,000-person town southeast of Phoenix since 2016. Her role setting policy combined with firsthand experience with the challenges entrepreneurs face \u2014 the property where her father\u2019s shop sat was seized by eminent domain and turned over to a soda bottling plant \u2014 has given her a heightened appreciation for the role even the smallest businesses play in a community.<\/p>\n\n\n\n

\u201cI meet with our local business owners on a daily basis, but it\u2019s our small entrepreneurs that have caught my eye and that are so important to our community,\u201d says Daniels.<\/p>\n\n\n\n

\"\"
Mayor Jenn Daniels at the 2019 Gilbert Days parade<\/figcaption><\/figure>\n\n\n\n

Yet just how big an economic contribution they make only became clear to Daniels recently, when she reviewed data from Venture Forward<\/a>. The program, which combines information about GoDaddy\u2019s 19 million U.S. domain-name websites with data from the Census Bureau, Bureau of Labor Statistics and similar sources, quantifies the impact of these \u201cventures\u201d on the American economy and individual communities. The data showed more than 35,000 ventures in Gilbert, or 17.2 for every 100 residents, making it one of the more venture-dense places in the U.S. (Nationally, the rate is 3.2.)<\/p>\n\n\n\n

\u201cI don\u2019t think I realized the magnitude of their size and impact,\u201d says Daniels. \u201cI could go to either side of my own house and meet someone running a venture.\u201d<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

To get a better understanding of how to help nourish these ventures and encourage new ones, Daniels and her team worked with GoDaddy to survey ventures based in Gilbert. The survey, conducted among 226 GoDaddy customers there, found that Gilbert has a high rate of ventures that provide a primary income (22.6%), supplemental income (41.6%) or employ people (28.8%). It also surfaced key areas where Gilbert could do more to help ventures.<\/p>\n\n\n\n

\n
Read more about policies that help promote ventures<\/a><\/div>\n<\/div>\n\n\n\n

\u201cThe research has caused us to have some conversations about these ventures,\u201d says Daniels. \u201cHow do we support this population? How do their needs differ from other businesses? What tools and resources do they need to grow?\u201d<\/p>\n\n\n\n

Who are these microbusinesses and how can we help?<\/h3>\n\n\n\n

For decades, government figures have tracked small businesses, defined as having 100 or fewer employees, and their impact. There\u2019s some overlap between small businesses and ventures \u2014 many small businesses have websites, after all. But there are many more venture operators who haven\u2019t registered as businesses or who run their websites on the side and whose businesses don\u2019t get picked up in government data.<\/p>\n\n\n\n

Analysis shows ventures strengthen the financial health of communities and make them more resilient to economic shocks<\/a> like the COVID-19 crisis. According to the latest Venture Forward data, cities with higher concentrations of ventures suffered less job loss and had lower unemployment rates in April 2020, when both metrics reached record highs. The research also found that highly active ventures \u2014 those that contain many links across the internet, have significant traffic and features like payment portals \u2014 have an outsized impact on a community\u2019s ability to recover from a recession. Adding one highly active venture per 100 people in a county can increase median income by $408, or 11.3% over the standard increase 2016-2018.<\/p>\n\n\n\n

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See the latest Venture Forward data<\/a><\/div>\n<\/div>\n\n\n\n

When it comes to encouraging ventures, Gilbert is doing something right. According to the survey, three-quarters of venture respondents say they\u2019re contributing to the local economy by generating income or employing people. For surrounding Maricopa County, which GoDaddy also surveyed, about two-thirds of venture operators generated income or employed people.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

\u201cOne of the questions local governments ask themselves is \u2018what\u2019s the competitive advantage to my area?\u201d says Karen Mossberger, a public affairs professor at Arizona State University, who conducted analysis for the Venture Forward study. In Gilbert, she says, \u201cIt looks like these ventures are an interesting part of that picture.\u201d<\/p>\n\n\n\n

Gilbert, which recently celebrated its centennial, was originally a farming community fueled by commerce from a railroad that runs through the town. The town has experienced considerable growth since 1980, when its population was just 5,717.<\/p>\n\n\n\n

Today, it\u2019s an economically diverse suburban center in the southeast valley of Greater Phoenix. According to recent census data, Maricopa County, which includes Gilbert, is mostly white and Hispanic; 34% of residents hold a college degree; the median household income is about $89,000; per capita income is $35,559.<\/p>\n\n\n\n

While the Gilbert survey doesn\u2019t say why ventures are taking hold there \u2014 though education, access to broadband, and the presence of IT jobs are national factors in venture growth \u2014 it does address the points that Daniels is most interested in: What tools do they need to start and thrive?<\/p>\n\n\n\n

Getting to yes<\/h3>\n\n\n\n

To start their ventures, the Gilbert respondents listed three primary obstacles. Among them were marketing (48.8%), followed by access to capital (28.3%), and then by help with permitting and licensing (27.7%). Once established, their concerns shift slightly. Marketing remains the top challenge (46%), followed by help finding skilled employees (19.6%) and access to loans (17.8%).<\/p>\n\n\n\n

\u201cGilbert looks nationally at cities like Austin, Nashville and Denver for best practices,\u201d says Dan Henderson, Gilbert\u2019s economic development director. \u201cThe town council just approved a pilot program that will offer technical assistance and training for small ventures.\u201d<\/p>\n\n\n\n

In addition, Gilbert is piloting a public-private partnership with small businesses for marketing. The town contributes 80% of the funds and the private sector contributes 20%, which will be used for a range of online and offline activities. Daniels and Henderson would like the pilot to become permanent and plan to extend its reach. \u201cWe\u2019re inviting ventures into the program,\u201d says Henderson, and the cost to participate would be close to nothing.<\/p>\n\n\n\n

\"\"
Scenes from the 2019 Gilbert Days parade<\/figcaption><\/figure>\n\n\n\n

Gilbert is also looking for ways to help ventures with networking. Some 12.7% of survey respondents said a lack of networking opportunities (with potential backers, suppliers and local media influencers) is an obstacle to starting a business. Another 10.4% cite it as a challenge to growth. The local chamber of commerce has always been a popular choice for many local businesses seeking to network. \u201cBut I don\u2019t think any venture is looking to spend $300 for a membership fee,\u201d says Daniels. \u201cSo how can we connect them, build a network without cost?\u201d<\/p>\n\n\n\n

One solution, says Daniels, is to create a physical environment for them to gather and work, \u201cwhere creativity can flourish and be a catalyst for new growth and ideas,\u201d says Daniels. In Gilbert, that includes creating pocket parks and other open space that\u2019s Wi-Fi-enabled.<\/p>\n\n\n\n

Networking also means connecting ventures with the kind of people who may have $50,000 to invest \u2014 not enough to be a venture capitalist, but enough money for a microbusiness to launch and survive.<\/p>\n\n\n\n

\u201cWe\u2019re also developing an entrepreneurship network,\u201d says Henderson, which is providing what Gilbert survey respondents said they needed most: access to angel investors as well as coaching and mentoring services. Henderson adds, \u201cThis study data has really changed the way we\u2019re approaching our economic development programming services.\u201d<\/p>\n\n\n\n

Looking forward, not backward<\/h3>\n\n\n\n

When consulting clients arrive at Mayor Daniels\u2019 home, \u201cThey come to me because they\u2019re in a mess and they got in trouble,\u201d says Daniels. \u201cTheir business has either been set up improperly or they\u2019re in some sort of tax or financial and permitting trouble.\u201d<\/p>\n\n\n\n

Daniels helps them with things like figuring out if they\u2019re properly insured, introducing them to an accountant to make sure they\u2019re set up properly, helping them figure out what licenses are needed and how to navigate local business requirements. \u201cThat\u2019s my side hustle and I see this fairly regularly,\u201d says Daniels. \u201cPeople just look at government processes especially as a huge obstacle to access success.\u201d<\/p>\n\n\n\n

\"\"
Mayor Jenn Daniels in her Gilbert, Arizona office<\/figcaption><\/figure>\n\n\n\n

She\u2019d like to see less of that. And she\u2019d like to lower those bureaucratic barriers. She believes small things can help. \u201cWe\u2019ve been talking about removing the requirement to home-based businesses, which is $15 to renew annually. But frankly, what are we using that money for? It goes into a general fund. If we can eliminate that little barrier, that can make your life easier.\u201d<\/p>\n\n\n\n

She\u2019d also like to do away with certain punitive fines. The goal would be to make it easy for people to just become compliant moving forward. Beyond that, she wants to create a town culture where residents feel free enough to create and innovate.<\/p>\n\n\n\n

\u201cIn Gilbert, we talk a lot about building the city of the future,\u201d says Daniels. \u201cA lot of conversations we\u2019re having are around race and civil unrest and what we\u2019ve been experiencing. We have to ask ourselves, are we building the people of the future? And what skills will they need? And how can we help? That\u2019s what\u2019s important.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The Phoenix suburb is now looking at how it can help these everyday entrepreneurs \u2014 and foster more of them<\/p>\n","protected":false},"author":15,"featured_media":531,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"class_list":["post-436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-city-spotlight"],"acf":[],"yoast_head":"\nHow Ventures Support Economic Resilience | Venture Forward<\/title>\n<meta name=\"description\" content=\"Analysis shows ventures strengthen the financial health of communities and make them more resilient to economic shocks like the Covid-19 crisis.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.godaddy.com\/research\/ventures-support-economic-resilience\/\" \/>\n<meta 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