Small businesses are regularly called the backbone of the American economy because they play such a critical economic role in the communities they call home—no matter how large or small the community.
That is especially true in small towns and cities where the vitality of small businesses often becomes the economic engine for communities, helping them thrive in good times and survive in bad.
"Small businesses are critical players in large cities but also in rural and suburban communities," said Justin Nelson, co-founder and president of the NGLCC. "The economic downturn has hit everyone, and small businesses have been especially hard hit, but they are the force that continues to push the economy forward toward a brighter future."
That brighter future often comes as a result of pulling together during difficult economic periods in small town America, say business owners. While each small community is unique, they generally share a commitment to building strong ties between businesses and the citizens who live there.
"I feel very appreciated as a small business in my community," said Carla Barrett, owner of Carla's Wellness Center in Columbus, Ind. "Our local officials do a lot to make us feel like we're part of a community, and I think it really makes a difference in periods like the one we're going through."
What often distinguishes small towns from large cities is the ability to build a bond where everyone recognizes their interdependence.
"There's a lot going on downtown in my community, and I think everyone feels that the only way to survive is for all of us to work together and to help each other out," said Barrett, a national member of the NGLCC.
In 2009, there were 27.5 million businesses in the United States, and small companies—those with fewer than 500 employees—represented 99.7 percent of the total, according to the Small Business Administration (SBA).
The number of small businesses in rural America, however, has dropped over the last decade, according to the latest information from the SBA. In 1995 there were 6.1 million small businesses in the United States. By 2007 that number had dropped to 5.2 million. At the same time, rural self-employment declined by 11 percent between 2000 and 2007. Researchers believe that these trends reflect both the shift in rural population to cities as well as the effect of economic downturns during these periods.
Terry Shull, owner of Shull Properties, a property management company in Douglas, Mich., says small companies face enormous challenges today, but he believes that smart business owners in both rural and urban America can turn even the most difficult financial period into an opportunity.
"Despite the economy, I've stayed busy," said Shull, whose clients include homeowners and renters in this resort community. "I have a diverse company, and I wear many hats. Everybody has to step up his or her game in tough times."
And because the pool of clients is so small in a town like Douglas, which becomes a mecca for LGBT vacationers every summer, Shull says that the addition of even a single new entrepreneur or business causes problems in rural areas.
"More and more people get laid off from big companies and they look for extra work or start their own businesses, and maybe they get into your field, and it makes it more competitive," Shull said. "You've got to ask yourself how to stay competitive. You need to reinvent yourself and keep moving forward."
Moving forward is essential, since small businesses carry a substantial economic load in this country. Small companies employ half of all private-sector employees, paying 44 percent of total U.S. private payrolls, according to the SBA. They are responsible for generating 65 percent of net new jobs over the past 17 years.
"What my clients have been reporting to me is that things are starting to pick up a bit," said Linda Roe, a New Mexico certified public accountant (CPA) who has a number of small business owners as clients. "It's been slow and somewhat of a struggle. But they've seen opportunities coming up and work is starting to loosen up for them. They're finally starting to see a little bit of light."
Roe says her business has been fairly steady over the last few years, but she says that mainly reflects her decision to not grow her company too big. She's kept her accounting practice small enough that even as her annual growth has gone from double to single digits in recent years, she can stay comfortably in the black.
"I'm basically at my maximum as far as work. Instead of bringing in a lot of new business, I've been trying to do things a little smarter to increase revenues rather than increasing clients," Roe said.
Sometimes working smarter means developing ties with other LGBT businesses. In small towns, there are few LGBT chambers of commerce to join, but there is a sense of camaraderie among LGBT business owners. And small towns can be much more accepting of LGBT business owners than some outsiders might think. In fact, small and rural communities across the country—from Shepherdstown, W.Va. to Berryville, Ark. to Taos, N.M.—count on their diverse LGBT populations to build their economies.
"I don't have rainbow flags up, but everybody who comes to me for services knows who I am and about my partner," said Barrett. "Being lesbian-owned hasn't hurt the business, and if there are people who wouldn't come to me because I'm a lesbian, then that's okay. I wouldn't want them to come."
