A little help for small business
New businesses have about a 50-50 chance of surviving more than five years. While the reasons for this oft-cited statistic from the Small Business Administration vary greatly depending on the type of business, its location, management and other factors, the costs associated with beginning and upgrading a business can contribute to the challenges entrepreneurs face as they strive to succeed.
So-called soft costs, expenses related to engineering or architectural work or securing necessary zoning permits, for example, can be unanticipated or somewhat difficult to predict. When a business budget is tight, unanticipated costs could further skew those already none-too-encouraging odds of success.
The City of Groton’s Economic Development Commission this spring established a grant program aimed at helping new and existing businesses bolster the odds for success by aiding with these soft costs. The commission earmarked $5,000 in its 2018-2019 budget to make grants of up to $1,000 each to cover the costs associated with the planning and zoning process, including surveys and architectural fees. Informatioon about the program is available on the city’s website at www.cityofGroton.com.
Small businesses are the backbone of our local economy, and while no one has yet taken advantage of the still new program, it is a worthwhile effort which, if successful, will provide positive returns for the town in return for minimal investment.
City officials are working to spread the word about this grant opportunity.
“We want our business and service community to know that we have their backs and hope that a successful launch of the BSC grant will lead to future growth in business incentives that we can offer,” commission chairman Cheryl Auerbach said in announcing the program this spring.
The City of Groton is home to some of the region’s major employers and taxpayers, putting it in an enviable position among local municipalities. In instituting this program aimed at much smaller businesses than the likes of Electric Boat, city officials demonstrated their understanding that the healthiest economy is built on a diversity of types and sizes of commerce.
This program could be a boost, for example, to the city’s historic Thames Street, a place where many types of small businesses once thrived and served local residents. As is unfortunately the case in many small downtown business districts across the state, a fully revitalized Thames Street is not yet a reality.
The City of Groton is not the first or only Connecticut municipality to offer financial incentives to help small businesses succeed, but this small grant program is a welcome addition to the mix. It could mean the difference between success and failure for an entrepreneur operating close to the financial margins.
Establishing the program also sends a signal that the city is a business-friendly place, and that’s the type of atmosphere that will help lead to a healthier overall economy for the region.