GENESEE COUNTY 2021 | SMALL BUSINESS ANALYSIS
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GENESEE COUNTY 2 0 2 1 | S M A L L B U S I N E S S A N A LY S I S
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Jennifer Owens CEO, Lakeshore Advantage
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ENTRYPOINT STAFF
Emily Heintz Founder & Managing Director
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© 2021 EntryPoint. This report may be copied and distributed so long We would also thank the dedicated organizations that supported this project, including:
as the report is not altered and fees are not charged to the recipients Flint & Genesee Economic Alliance, Charles Stewart Mott Foundation, Michigan Small
of such copies. Charts, graphs, and other images may be excerpted, Business Development Center, Flint Township DDA, Inventors Council of Mid-Michigan,
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Acknowledgments
Dear Readers, Table of Contents
In recent years, Genesee County has navigated social,
political, and economic ups and downs and demonstrated
the incredible resilience needed to succeed in the
06
Overview of Genesee County
08
Genesee
12
Race & Ethnicity
County’s Disparity Analysis
face of adversity. A critical part of Genesee County’s
Resilient
perseverance is its strong small business community.
Business
Small businesses are pillars of the community as their
Community
owners work tirelessly to bring economic stability, value
and vibrancy to the region.
At EntryPoint, we foster inclusive and vibrant communities
across the Midwest through research and community-
focused programming. Over the last six months, we have been
fortunate to have the opportunity to speak with hundreds of
business owners across the county about the needs, challenges,
and opportunities they see for the future of Genesee County.
Based on our research and those conversations, we developed
this comprehensive analysis of Genesee County’s small
business ecosystem and all of the highlights and struggles that
18 24
characterize this diverse and unique community.
This independent report, funded by the Flint & Genesee
Economic Alliance, is intended to serve as an annual resource
Gender Earnings Overview
that provides Genesee County with the insights necessary to
Disparity
serve the small businesses in the community, reduce obstacles,
Analysis
and help business owners navigate challenges that arise when
growing their companies. We at EntryPoint love working with
organizations that value listening to the needs of community
members and are passionate about building opportunity in
their communities. It is our belief that comprehensive and
28
Capital
32
Impact of
ongoing research is critical to helping economic developers and Needs COVID-19
nonprofits better address the specific and constantly evolving of Small on Small
needs of the small businesses, measure the effectiveness of Businesses Businesses
existing initiatives, build more inclusive programs, support a in Genesee
more diverse and equitable community, and better advocate for County
small businesses in the region.
We extend special thanks to the small business community in
Genesee County for coming together and contributing to this
research.
36
Supporting the Small Business Community
Emily Heintz
Founder & Managing Director, EntryPoint
2021 | Genesee County Small Business Analysis Table of Contents
LEADING THE INDUSTRIAL
CHARGE
Around 1900, Genesee County became
the premier location for manufacturing
in the United States with the Buick Motor
Company being founded in 1903 and
General Motors (GM). In 1908, Genesee
County quickly began to develop. This
industrial “boom” resulted in a need for
Genesee County played a central role in the the county to adapt to the lifestyle needs
industrial development of the United States. of workers and infrastructure needs
for employers. This continued into the
Through this growth, the county rose to 20th century as the auto industry rose
international prominence. However, more and other industrial companies viewed
Genesee County as an ideal location.
recently, the county has been hit hard by
A SHIFTING ECONOMY
economic turbulence and other challenges that
Beginning in the 1980s, the economy
have dominated its narrative. Unfortunately, of Genesee County began to shift due
to the global recession. This downturn
these struggles have disrupted connections
led to the decline of manufacturing
between communities and their commitment to with General Motors closing multiple
plants and communities being left
common growth. Still, Genesee County’s unique
without substantial infrastructure. As
history has led to a strong sense of culture and Genesee County headed into the 21st
century, obstacles continued to present
steadfastness amongst its people, creating
themselves with the progressive decline
potential for growth in the county. in manufacturing, the recession in 2008,
and the Flint Water Crisis in 2014. While
these events impeded growth in
the county, Genesee County was
undeterred.
Overview of Genesee County is the fifth
largest county in Michigan
Genesee County with a population of over
400,000. The innovative
residents across the county
have strived to maintain
a stable economy despite
these obstacles. This
determination is evident in the
vibrant entrepreneurial culture
that is present today, along with
the many community programs
that provide essential opportunities
for people across the county.
2021 | Genesee County Small Business Analysis Overview of Genesee County
Genesee Genesee County is perhaps SMALL BUSINESSES ARE THE
FABRIC OF GENESEE COUNTY
60% Small Businesses in
Genesee County
best known for its once-
County’s booming auto industry.
COMMUNITIES
Small businesses are spread throughout
BY LOCATION
Flint
Resilient Unfortunately, the area Genesee County with the highest
concentration of businesses in larger Grand Blanc
Fenton
has more recently suffered
Business
communities such as Flint, Grand Blanc,
and Fenton. Flushing
a series of blows to its
9
Swartz Creek
Community economy. Despite these
Small business owners largely tend
to be members of the communities in
% Flint Township
Clio
setbacks, the unemployment which their businesses are located.
Burton
7%
92% of small business owners in Genesee
rate in Genesee County has County live in Genesee County. 76% of
Davison
Other
gradually decreased since these small business owners live in the
2010, indicating steady
exact same municipality of Genesee 5%
County as the business they own. Only
3% 3% 4%
3 3% 3
economic growth over 8% of Genesee County business owners
% %
live outside of Genesee County, with
the past decade. the most popular origins being nearby
Shiawassee County and Oakland County.
Although unemployment
increased at the pandemic’s
peak, unemployment is now
approaching its pre-pandemic Flint is known for its strong sense
levels. Additionally, in response
to the water crisis, many of community and resilience. Small
organizations launched efforts to
improve conditions in Flint, and this
businesses like Friends of Berston
national spotlight attracted employers get to contribute to this wonderful
to the county. In light of the county’s
resiliency, community leaders and city culture by providing individuals
residents are optimistic that prosperity
lies just around the corner. Genesee
with needed resources, as well as
County’s low cost of living, proximity outlets to have fun and connect with
to Detroit, and access to the I-69 Trade
Corridor offer incentives for workers others in the community.”
and employers to settle in the area.
BRYANT NOLDEN
With its economy steadily improving, Executive Director of Friends of Berston
the place once known as Vehicle City
now contends for a much different title:
Comeback City. However, diversifying
the county’s economy by creating an
entrepreneurship support system that
fosters networks and cultivates strong
leaders will be critical to long-term
sustainability in the area.
2021 | Genesee County Small Business Analysis Genesee County’s Resilient Business Community
When you support local businesses, WHO ARE OUR NEIGHBORHOOD
BUSINESS OWNERS?
it benefits the whole community. Small businesses, as defined by EntryPoint for the purposes
of this report, are all registered businesses in Genesee County
We are thankful to be in Genesee with 25 full time employees or fewer and less than $10 million
County, to be working with other in average annual revenue. When viewing a snapshot of the
demographics of this population, we can see that small business
great local businesses, and for the owners across the county are a heterogeneous mix of race, ethnic
backgrounds, ages, and genders. We can also see that the number
support that we receive from this of small business owners in Genesee County that have served in the U.S.
awesome community.” Armed Forces, military reserves, or National Guard is 10 times higher than the
national average. In addition, 8% of business owners have a disability or learning
ANGIE ROOT difficulty, which is less than the national average but was also an optional question in
Co-Owner of Fireside Coffee Co. our research.
While this diversity is welcome and contributes to the overall health of the local
economy, it also presents some challenges in nurturing this vibrant business
community, meeting the needs of small business owners, and creating more
opportunity for all residents of Genesee County. Creating a consistent and objective
approach to tracking and listening to the lived experiences of community members
through annual research and other methods is crucial to the ability of economic
development and community-focused organizations trying to support this community
effectively. Genesee County has demonstrated incredible resilience and economic
progress, and effective policy initiatives and work from community organizations have
great potential to build on the momentum of this small business community.
Genesee County’s rich culture and diversity make it an attractive community for
business owners of all backgrounds to live and grow their businesses.
SHOP LOCAL FOR ALL YOUR
BUSINESS AND PERSONAL 31% 17 %
Small Businesses in
Genesee County
Small Business Owners in Genesee County
3% 3%
NEEDS BY SECTOR RACE 41% 46% 3% 4%
Small businesses serve a large variety Professional Services White, not Hispanic or Latino American Indian and Alaska Native,
of needs in Genesee County. Residents Food & Beverage (Brick- Black or African American Asian, Native Hawaiian and Other
of Genesee County can seek out and-Mortar & Pop-Ups) Pacific Islander
Hispanic, Latino or of Spanish origin
Two or More Races
tax or legal help at one of the local Retail (Boutiques & Online) Arabic, Chaldean, or of Middle
professional services organizations,
13 % Art, Entertainment Eastern Origin
get lunch with a colleague at a local
restaurant, or meet with friends to
7% & Recreation
Nonprofit/Social Enterprise GENDER 49% 51%
shop at a number of retail stores. Personal Care (Beauty
Salons, Fitness, etc.) Female Male Non-Binary
Having businesses in a wide range
of sectors in the region helps the 3% 8
% Automotive & Transportation
Construction
community weather economic storms,
4% 6
% 7
% Child & Elder Care AGE RANGE 16% 22% 31% 17% 14%
4%
such as a significant disruption in a Other
particular industry or a global pandemic. Age 21-34 Age 35-44 Age 45-54 Age 55-64 Age 64+
Because these events impact each sector
SERVED IN THE U.S.
differently, the overall impact on the
community is lessened. This economic
ARMED FORCES 10% 90%
Yes No
diversity is also essential to Genesee
County’s continued success given its
HAS A DISABILITY OR
reliance on the automotive industry. LEARING DIFFICULTY 8% 92%
Yes No
2021 | Genesee County Small Business Analysis Genesee County’s Resilient Business Community
Race & Ethnicity CITIZENS STATEWIDE SECURITY is a security and surveillance
technology company opened by Flint resident Deborah L.
Disparity Analysis Johnson in 2003. Deborah and her husband founded the business
in their basement, working tirelessly to grow their business in
Michigan, along with the rest of the nation, the interest of protecting the homes and businesses in their
is seeing success and profits from diverse community. Now, after 18 years, Citizens Statewide Security is a
premier security company in the region. Although the COVID-19
professionals within the small business
pandemic has required Deborah to prioritize the safety of her
landscape. However, statewide funding staff by shifting to partial virtual operations, the company still
data indicates that companies led strives to meet a customers’ needs with a personal touch. For
by underrepresented groups are example, they offer discounts to senior citizens to provide peace
systemically underfunded. of mind at a low cost to families with loved ones over 50. As
her customers attest, this devotion to providing quality service
security systems makes Citizens Statewide Security an integral
Genesee County has a strong Black, Arabic, and part of the Genesee County community.
Hispanic community. The county is predominantly
White, but there is a rich diversity of cultures and
ethnicities. When looking at the regions with the
highest number of small businesses, we see that some
of these areas are among the most racially diverse in
Genesee County.
Race in Genesee County Genesee County has the opportunity to take a proactive approach in fostering a
2% more inclusive community that can retain and support small business owners that are
GENESEE COUNTY 71% 20% 4% 3% people of color. In Genesee County, 59% of small businesses are led by someone who
is Black, Hispanic, Arabic, American Indian, Asian, or Native Hawaiian (i.e. BIPOC) when
1% only 29% of county residents are among those races. Supporting people of color and of
marginalized ethnic backgrounds is vital to improving Genesee County’s overall economy.
FLINT 35% 54% 5% 5%
Small Business Owners in Genesee County
2% 3% 3%
GRAND BLANC 78% 16% 3% 1% RACE 41% 46% 3% 4%
White, not Hispanic or Latino American Indian and Alaska Native,
1% Black or African American Asian, Native Hawaiian and Other
FENTON 91% 4% 4% Hispanic, Latino or of Spanish origin
Pacific Islander
Two or More Races
Arabic, Chaldean, or of Middle
1% 1% Eastern Origin
FLUSHING 93% 3% 2%
White, not Hispanic or Latino
Black or African American
Hispanic or Latino
American Indian and Alaska Native, Asian, Native Hawaiian and Other Pacific Islander
Two or More Races
2021 | Genesee County Small Business Analysis Race & Ethnicity Disparity Analysis
As a family business in the Flint CREATIVE HAIR SCHOOL OF COSMETOLOGY was founded by
Flint resident Corinthian Carouthers in 1999. A former model
community, we believe in the with a passion for empowering others through beauty,
ripple effect. Our goal is to be an Corinthian opened the school in the hopes of transforming
educational institution of excellence the lives of students through creative hairstyling. Corinthian
brought her two children on board as part owners and her
and to lead by example in supporting family has persevered while facing some of the toughest
others. Likewise, this amazing challenges of growing a small business. Creative Hair School
community has been supporting of Cosmetology is celebrating 22 years of service to Genesee
County. Not only is Corinthian a devoted educator, but she is
us for 22 years, and that support also committed to giving back to her community through various
is proof that small businesses can initiatives, including Free Care For Your Hair which provides free
survive by leaning on each other.” hair care services at schools and community centers to encourage
proper hair maintenance. Thus, Corinthian’s school has become
CORINTHIAN CAROUTHERS II
more than just a school: it is also a flourishing business, a family
Co-Owner of Creative Hair School of Cosmetology
for her students, and a symbol of Genesee County’s unwavering
determination in the face of adversity.
ECONOMIC IMPACT OF BIPOC-
BIPOC-Owned Small OWNED SMALL BUSINESSES 3% 11% BIPOC-Owned Small
Businesses in
Genesee County 80 % Geography Sectors 19 % Businesses in
Genesee County
5%
BIPOC-owned small businesses are Small businesses serve a large variety
BY LOCATION located predominantly in Flint. Although of needs in Genesee County. Businesses BY SECTOR
the vast majority of small business in the food & beverage and retail
5%
Flint Food & Beverage (Brick-
Grand Blanc owners live in the same community as industries were most prominent, and-Mortar & Pop-Ups)
their business, BIPOC small business followed by nonprofits, personal care Nonprofit/Social
Fenton Enterprise
17%
owners are more likely to live in the same businesses, and professional services.
8%
Swartz Creek Personal Care (Beauty
community as their business than White Salons, Fitness, etc.)
Burton
business owners.
Other Professional Services
6% 96% of BIPOC small business owners Art, Entertainment &
Recreation
9%
in Genesee County live in the county,
compared to 88% of White business Automotive & Transportation
3%
owners.
11% 12
% Child & Elder Care
7 % Construction
2 2%
82% of BIPOC small business owners
% live in the exact same municipality of
Other
Genesee County as the business they
own.
2021 | Genesee County Small Business Analysis Race & Ethnicity Disparity Analysis
Age of Business Employers
83% of BIPOC-owned These Genesee County businesses employ an average
businesses in Genesee of 3 full-time employees, 4 part-time employees, and
County are less than 15 years 3 contract employees. For our research purposes,
old. Over half of these companies full-time and part-time employees are those that
are in their first five years of business. receive salary and benefits, whereas independent
contractors are paid a fee but are able to obtain
According to data from the U.S. Bureau of Labor
work with multiple organizations if they choose and
Statistics, about 50% of small businesses nationally
generally make their own schedules. Most employees
fail within their first five years. In Genesee County,
CURTIS ACCOUNTING AND TAX 67% of BIPOC-owned business cease operations of these businesses live within Genesee County, FRIENDS OF BERSTON is a nonprofit
SERVICES is an accounting firm founded showcasing the impact small businesses have on their organization founded by Flint resident
before their sixth year of business, making immediate
local economies. When residents spend money at a
by Flint resident Marlena Curtis in 2015. support for new businesses especially critical. A Bryant Nolden in 2014. This organization
Genesee County small business, much of that revenue
strong foundation of resources, training, funding and
After years of experience in the accounting is spent on wages and benefits for other Genesee is dedicated to preserving the historic
support are needed for business owners in their first
industry, Marlena was inspired to start few years of operation to increase the number of County residents. Berston Field House and its legacy.
her own business specializing in tax businesses that are building long-term opportunity Berston Field House was built in 1923
Employment Benefits
preparation, accounting, and business and wealth in the region. This is particularly true in on land donated by Neil Berston and
In order to attract the best, most loyal talent, most
Flint, where we see the highest density of BIPOC-
consulting. Her business has flourished, small business owners offer employees benefits. With a has since been used as a center for
owned businesses and BIPOC residents.
with individuals and businesses alike workforce that predominantly lives in Genesee County, underserved communities, nurturing some
the community is impacted significantly by the ability
praising her expertise in the field and of the area’s top athletic talent. However,
of small business owners to provide benefits such as
her commitment to quality customer paid time off, parental leave, healthcare coverage, and the City of Flint became unable to afford
service. Marlena is also dedicated to BIPOC-Owned Small retirement plans to their employees. However, half of all maintenance of its facilities, and so Bryant
serving her community, providing time and
resources to promoting financial literacy
54 % Businesses in
Genesee County
BIPOC-owned small businesses in the region are unable
to provide benefits to their full-time employees. Of
stepped in to continue its service to the
community. Now, Friends of Berston
6%
BY AGE the small business owners that are providing benefits,
and empowering others in the region. paid time off and healthcare coverage were the most hosts events and offers resources for
She regularly provides free tax advice 0-5 Years the community that support the area’s
common benefits. In addition, nearly all BIPOC-owned
5%
6-10 Years
online, offers weekly giveaways for CPL small businesses are providing either free lunch, snacks, diversity. Its mission is about more than
11-15 Years
or beverages, as well as free parking, regardless of
trainings, and hosts contests with other 16-20 Years saving a building – it is about preserving
whether they provide any other benefits to their
area businesses. As Curtis Accounting and
Tax Services continues to thrive, Marlena’s 6% 21-30 Years
30+ Years
employees. one of Genesee County’s most important
landmarks, promoting its legacy for
determination and dedication to her Employee Benefits providing opportunities to youth, and
customers exemplifies the heart of Genesee
County’s small business community.
12% 25 %
serving as a symbol of both hope and
achievement.
17 %
16% 11%
11%
PAID TIME PARENTAL HEALTHCARE RETIREMENT
OFF LEAVE COVERAGE PLAN
2021 | Genesee County Small Business Analysis Race & Ethnicity Disparity Analysis
Gender Disparity Analysis As a female, African American
business owner, the challenges
The distribution of Genesee County’s women-owned businesses
can sometimes be overwhelming.
is on par with the national average. According to data from
the U.S. Bureau of Labor Statistics, about 50% of all people in I am grateful to this community
Genesee County are women. The small business community for embracing our critical work. It
of the county reflects these demographics, as 49% of small is paramount for children to see
businesses across the county are owned by women. business people who look like them.
Growing up, I watched my parents
working and leading single-parent
homes, while also taking the time to
Small Business Owners in Genesee County
instill in me a sense of compassion
GENDER 49% 51% for others and devotion to the
Female Male Non-Binary
community. Thus, it was natural for
me to become an entrepreneur and
THE ECONOMIC IMPACT OF WOMAN-OWNED SMALL BUSINESSES
Geography to work in social justice. My studies
Women-owned small businesses are located across Genesee County, with the highest of prominent African Americans like Malcolm X,
density of these businesses located in Flint (59%) and Grand Blanc (10%). Although
the vast majority of small business owners live in the same community as their Harriet Tubman, and Martin Luther King taught me
business, female small business owners are more likely to live in the same community
as their businesses than male business owners.
that supporting local businesses — specifically in the
96% of female small African American community — is a powerful way to
59% raise our constituents from the ails of poverty.”
business owners in
Genesee County Woman-Owned
live in the county, Small Businesses in ANGELA STAMPS
compared to 88% Genesee County Founder of Kentakee Athletic & Social Clubs
of male business BY LOCATION
owners.
Flint KENTAKEE ATHLETIC & SOCIAL CLUBS is a community-based nonprofit
71% of female founded by Flint resident Angela Stamps in 2010. The organization is dedicated
Grand Blanc
small business
Fenton to empowering and inspiring Genesee County youth through educational
owners live in
Flushing and physical programs oriented around biking. As a transportation necessity,
the exact same
Swartz Creek
municipality Angela began biking in 2006, but it soon evolved into a passion. After moving
Clio
of Genesee
County as the
businesses 6% 10% Burton
Davison
back to Flint in 2010, she launched a biking program that has since become
a cornerstone of the community. Affectionately nicknamed “The Bike Lady,”
they own. Other Angela welcomes all students to her programs, hoping to inspire physical
5 % exercise and self-confidence. Students receive a bike and gear after completing the
3 %
5 6
% % program and are also provided with tenacity, pride, and critical thinking skills that extend
3 3%
% far beyond the bike trails of Genesee County to wherever participants may go.
2021 | Genesee County Small Business Analysis Gender Disparity AnalysisRace Sectors
The racial makeup of Genesee County’s woman-owned business community reflects Small businesses serve a large variety of needs in Genesee
the overall small business community. County. Businesses in the retail (22%), personal care (20%),
52% of woman-owned small businesses are led by Black women, followed by White and food & beverage (18%) industries are most prominent,
(non-Hispanic) women who own 40%. followed by art & entertainment, nonprofits, and professional
services.
In the broader small business community, Hispanic (60%) and Black (56%) women
own more small businesses than their male counterparts. White (non-Hispanic)
2 2%
%
8%
women own about the same number of businesses as their male counterparts.
4%
Arabic (38%), American Indian and Alaska Native, Asian, Native Hawaiian, and other
Woman-Owned Small
22
Pacific Islander (17%) women own fewer businesses than their male counterparts.
% Businesses in
Genesee County
Small Business Owners in Genesee County BY SECTOR
3% 3%
ALL BUSINESSES 41 % 46 % 3
% 4% 8% Retail (Boutiques & Online)
Personal Care (Beauty
Salons, Fitness, etc.)
2% Food & Beverage (Brick-
WOMAN-OWNED 41% 52% 4% 1% 8 % and Mortar & Pop-Ups)
Art, Entertainment &
White, not Hispanic or Latino
Black or African American
American Indian and Alaska Native,
Asian, Native Hawaiian and Other
20 % Recreation
Nonprofit/Social Enterprise
Hispanic, Latino or of Spanish origin
Arabic, Chaldean, or of Middle
Pacific Islander
Two or More Races 8% Professional Services
Child & Elder Care
Eastern Origin
18%
Automotive & Transportation
Construction
Other
FIRESIDE COFFEE CO. is a coffee and drink mix company LINDEN FAMILY EYE CARE is a vision care service founded by
founded by Swartz Creek resident Carol Davis in 1988. Carol Linden resident Dr. Gerianne Mulanix in 2016. After studying in
began by selling her specialty mocha mixes out of her kitchen, Chicago and completing her residency in Kentucky, Gerianne
and her delicious recipe quickly attracted customers. In 1990, returned to Genesee County to start her optometry practice
Carol moved to Fireside Coffee’s new Swartz Creek location, with a commitment to promoting eye health in the community.
where their fresh-roasted coffee is distributed to retailers Born and raised in Linden, Gerianne’s passion for serving her
nationwide. In 2016, Carol added a coffee shop to the building hometown is what drew her back to her roots where she restored
that, in addition to custom coffee blends, sells handcrafted and one of the oldest buildings in history downtown Linden. The
locally-made ceramic mugs, hand-carved coffee scoops, and practice prides itself on being from the community and for the
pastries. The business is also a family affair; Carol’s drink mixes community. Upon visiting Linden Family Eye Care, customers will
are based on a family recipe, and her daughter, Angie Root, find work from local artists on display and the practice regularly
became a part owner in 2018. Further, Fireside Coffee aims to hosts family events and supports neighboring businesses.
give back to the community by offering special area-themed Celebrating five years and counting, Gerianne is excited for the
coffee blends, such as Flint Strong Coffee and Frontline Fuel, and future of her practice and is passionate about providing more
using proceeds to benefit the community. than quality eye care to Genesee County.
2021 | Genesee County Small Business Analysis Gender Disparity AnalysisAge of Business Employers
78% of woman-owned Nationally, 50% of the workforce are employed at
businesses in Genesee businesses with fewer than 25 people on payroll.
County are less than 15 years Woman-owned businesses in Genesee County employ
old. 47% of these companies are an average of 2 full-time employees, 4 part-time
in their first five years of business. employees, and 4 contract employees. For our research
purposes, full-time and part-time employees are those
According to data from the U.S. Bureau of Labor
that receive salary and benefits, whereas independent
Statistics, about 50% of small businesses nationally
contractors are paid a fee but are able to obtain work
fail within their first five years. In Genesee County,
THE GRAFTED ROOT EATERY is a 64% of woman-owned business cease operations with multiple organizations if they choose and generally YUM VITTLES is a food truck opened
restaurant founded by Grand Blanc make their own schedules. Most employees of these by Flint resident Ebonie Jones in 2019.
before their sixth year of business, making immediate
businesses live within Genesee County, showcasing the
resident Michele Matthews in 2019. support for new businesses especially critical. A A Flint native, foodie and chef, Ebonie
impact small businesses have on their local economies.
strong foundation of resources, training, funding and
After she noticed few alternatives to the When residents spend money at a Genesee County Jones opened the eating establishment
support are needed for business owners in their first
processed food served in many eateries, few years of operation to increase the number of small business, much of that revenue is spent on wages because she wanted to create a menu
Michele devoted herself to using natural, and benefits for other Genesee County residents. that reflects the interests and appetites
businesses that are building long-term opportunity
locally-sourced ingredients to provide the and wealth in the region. This support is especially of her community. As such, the menu of
Employment Benefits
essential for woman-owned businesses and BIPOC-
community with food that is both healthy In order to attract the best, most loyal talent, most Yum Vittles features a diverse selection
owned businesses, as the business failure rate in the
and delicious. She earned a certificate small business owners offer employees benefits. With a that reflects the culture and cuisine of
first five years for these companies is approximately
workforce that predominantly lives in Genesee County,
in horticulture and decided to pair her 15-20% higher than the national average. Flint – all made from locally-sourced
the community is impacted significantly by the ability
knowledge of plant-based nutrition with of small business owners to provide benefits such as ingredients. From soul food classics like
her cooking skills. The Grafted Root paid time off, parental leave, healthcare coverage, and boiled crab legs to traditional staples
Eatery’s simple yet flavorful menu pairs 7 %
Woman-Owned Small
retirement plans to their employees. 44% of woman- like lamb chop dinners, Yum Vittles’s
9%
owned small businesses are unable to provide benefits
perfectly with the restaurant’s laid-back, ever-evolving menu keeps patrons on
Businesses in to their full-time employees. Of the small business
welcoming atmosphere. For Michele, Genesee County owners that are providing benefits, paid time off and the edges of their seats. With a thriving
The Grafted Root Eatery is about more BY AGE catering business as well, Ebonie hopes
6
healthcare coverage are the most common benefits
than serving delicious food – it is about
% 0-5 Years offered. In addition, nearly all woman-owned small that, in the near future, she will be able
nurturing her community. 47 % 6-10 Years
11-15 Years
businesses are providing either free lunch, snacks, or
beverages, as well as free parking, regardless of whether
add an additional food truck and possible
restaurant location for Yum Vittles as her
16-20 Years
they provide any other benefits to their employees.
14%
business grows in Genesee County.
21-30 Years
Employee Benefits
30+ Years
30%
17%
16%
14% 14%
PAID TIME PARENTAL HEALTHCARE RETIREMENT
OFF LEAVE COVERAGE PLAN
2021 | Genesee County Small Business Analysis Gender Disparity AnalysisEarnings Overview
The small businesses of Genesee County are Average Small Business in Genesee County
10 3 4 5
an inextricable element to the region’s sense
of strength, culture, and vibrancy. Many of
them have been operating in the area for
years, making them well-established fixtures
YEARS IN FULL-TIME PART-TIME CONTRACT
in the county and its communities. These OPERATION EMPLOYEES EMPLOYEES EMPLOYEES
small businesses are also a notable source of
employment for people in the area, consistently Revenue
Overall, income earned by small businesses had already been declining prior to
work with and hire other local businesses, and 2020, and this decrease was further exacerbated by the onset of the COVID-19
frequently engage in efforts to contribute to pandemic. Certain industries more suited to remote work were able to more
easily adapt to this shift in operations than other industries that require in-person
other elements of community development. As activities. This fact demonstrates how
such, the significance of small businesses to the critical it is to foster a diversity of Average Annual Revenue
industries in the county to better ensure IN GENESEE COUNTY
communities and people of Genesee County the resilience of the economy.
cannot be overstated, and so an awareness of
$
388,352 364,635
$
Small businesses in the personal
care, construction, art, entertainment
308,723
$
trends in their earnings is key to identifying and
& recreation, food & beverage, and
managing risks to the region’s economy. professional services sectors saw the
most significant decrease in revenue,
experiencing a 30-50% decrease in
annual revenue from 2019 to 2020.
2018 2019 2020
$1,800
Our community needs to focus on
$1,600
reducing obstacles for small business Average Annual Revenue
$1,400
owners while increasing coordination IN THOUSANDS
$1,200
across the entrepreneurial ecosystem. 2018 2019 2020
$1,000
Continuing to refine the path for
$800
small business owners is critical for
$600
developing new, innovative, local
$400
industries, while also helping our
$200
existing local small business owners
$0
be successful.”
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2021 | Genesee County Small Business Analysis Earnings OverviewExpense Net Income
Expenses overall for growing small businesses were consistent for most industries Since 2018, nearly all sectors in Genesee County have seen
What do business
prior to the onset of the COVID-19 pandemic but, overall, declined significantly fluctuating net income (income less operating expenses) owners do with
during 2020 due to reduced labor costs, cost of goods sold, and other savings
associated with reduced operations. However, some industries faced increased
annually. Over the past three years, small businesses in the art,
entertainment & recreation, food & beverage, and professional
net income?
incremental expenses during the second half of 2020 related to steps taken to services industries have been the only industries to see consistent purchase equipment and property
ensure public safety while operating during the pandemic. and ongoing decreases in their earnings year-over-year. to support their operations
Small businesses with the highest fixed costs, significant costs associated with It is also important to note that some of the sectors that were expand their businesses
operating during a pandemic, and challenges operating at full capacity during the growing in Genesee County prior to the pandemic have seen
pandemic faced the most severe monetary hardships in 2020. some of the largest setbacks: repay loans
Personal care businesses were growing steadily but have seen offer additional employment
nearly a 100% decrease in net income from 2019 to 2020. benefits to employees
$1,800
Construction businesses were prospering but have seen nearly hire additional people
$1,600 Average Annual Expenses
a 59% decrease in net income from 2019 to 2020. give year-end raises or bonuses
BY SECTOR IN THOUSANDS
$1,400 Child & Elder Care businesses were growing but have seen
2018 2019 2020 Net earnings is an important metric
nearly a 26% decrease in net income from 2019 to 2020.
to benchmark. Earnings and savings
$1,200
Nonprofits were prospering but have seen nearly a 24% give small business owners the
decrease in net income from 2019 to 2020. Unfortunately, this confidence and flexibility necessary
$1,000
fall has occurred during the time when the community needed to continue navigating challenges and
$800
them the most. economic downturns. Net income is a
Small businesses face many challenges that are specific to the key element for a county’s economy to
$600 industries in which they operate, which is why it is critical to function successful and to provide the
regularly monitor the overall health of the economy to both overall region with greater resilience
$400 and opportunity.
address issues in some areas while identifying paths for greater
success in others. No program or solution addresses the needs
$200
and challenges facing all business owners; as such, ongoing
$0 analysis of the small business community, listening to their own
reports of need, and flexibility on the part of local economic
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CHESSFROG FARMS is a community area that has limited access to affordable
garden opened by Marcus Brown, a Flint and nutritious food. To help address this $150
resident and veteran of the United States problem, Marcus purchased six acres in
Marine Corps, in 2019. Marcus is dedicated the Flint community and got to work. $100
to connecting Genesee County with access Since then, his vision of connecting locals
$50
to healthy and affordable food. In Genesee with nutritious produce has blossomed
County, community agriculture is vital to just like their community garden. During
$0
providing residents with the sustenance the COVID-19 pandemic, Chessfrog Farms
necessary to live. This is because much of was able to provide food and gardening $(50)
Flint can be classified as a food desert, or an resources to neighbors in need.
$(100) Average Annual Net Income
BY SECTOR IN THOUSANDS
$(150)
2018 2019 2020
2021 | Genesee County Small Business Analysis Earnings OverviewRAISING CAPITAL: SOURCES OF CAPITAL
Capital Needs OBTAINING OUTSIDE According to CB Insights, after lack of market need for their
of Small FUNDING product or service, the second-most common reason for a
The average amount of outside business to fail is running out of cash. Therefore, the ability
to obtain outside funding when needed is critical for the
Businesses funding obtained by small
business owners in Genesee ongoing success and growth of small businesses.
County since opening their In total, the amount of outside funding obtained by the
businesses is $232,000. nearly 3,000 small businesses in Genesee County since
Genesee County’s small Nonprofits and businesses they launched was approximately $430 million.
in the food & beverage
business community industry typically obtained
The most common sources of capital historically accessed
by small businesses in Genesee County are government-
is a large and vital more outside funding than
backed lending (CDFIs, SBA loan programs, etc.), friends
businesses in the personal care AWAKENED NATURALS is a health and
element of the region’s or professional services industry.
and family, and local programming (Genesee County
Restaurant Relief Grant, etc.). Nationally, prior to the beauty retail store launched by Flint
overall economy. These In the last year, the total amount resident Avi Morozov in 2016. After learning
pandemic, the most common sources of funding for
businesses are part of the of outside funding obtained by small businesses are friends and family and bank loans. about the negative effects that lab-made
business owners in Genesee County
fabric of that community increased by 125% from the year prior. Over $10 million
Prior to 2020, the most commonly-accessed capital was chemicals found in many beauty products
from friends and family, high net-worth individuals (angel can have on consumers’ health, Avi
and create vibrant culture was raised by small businesses in the region.
investors, wealthy individuals, etc.), and foundation/
60% of all small businesses in Genesee County obtained decided to create products without these
for both visitors and corporate grants.
some amount of outside funding in 2020. substances in favor of organic, natural
those who call the region
Sources of Capital Historically Accessed ingredients. She initially operated without
home. However, there is Percentage of Small Businesses by Small Businesses in Genesee county a storefront and planned to launch her
work that must be done that Obtained Outside Funding first store in Flint on April 1, 2020, but was
to ensure the economy
ANNUALLY
60% 40 % Government-Backed Lending forced to postpone due to the pandemic.
Avi initially struggled with the new, more
is stable and that there
remains robust capital
19% Other Individuals virtual normal, but was able to pivot by
creating a new marketing plan, offering
available for entrepreneurs 16%
18%
Local Programming
new products, and receiving SBA support.
and their growing
companies. The ability of
9% 8% Traditional Bank Financing
Now, Awakened Naturals is celebrating
achievements in the face of adversity,
and looks forward to providing Genesee
small business owners to
access the capital they
2018 2019 2020 8% Government Grants/Programs
County with products that amplify one’s
8%
beauty through physical health and
Foundation/Corporate Grants
need is critical to ensuring 42% of entrepreneurs start their businesses with little or wellness rather than in spite of it.
no outside funding and typically, it is recommended that
4%
the county’s economic entrepreneurs have at least three to six months of cash Community Fundraiser
health in the long run. reserves when starting a business. Nationally, for individuals
3%
that do not have significant personal funds, the ability to
High Net-Worth Individuals
work a second job, or a positive credit history to secure
a personal credit card, starting a new business can be
significantly more difficult.
2% Crowdfunding through Platform
2021 | Genesee County Small Business Analysis Capital Needs of Small BusinessesOBSTACLES IN OBTAINING Obstacles in Obtaining Funding and Resources Anticipated Sources of Capital CAPITAL NEEDS OF SMALL
FUNDING AND RESOURCES BY PERCENTAGE OF BUSINESSES BY PERCENTAGE OF BUSINESSES BUSINESSES
There are a variety of challenges small 75% of small business owners anticipate
business owners face when trying to
obtain outside funding or other resources 29% Lack of Access to Necessary Network
44% Government-Backed Lending
needing additional outside funding in
order for their businesses to continue
to grow their businesses. operating successfully. Small businesses
29% of small business owners in 28% Credit or Collateral Requirements
30% Local Programming in Genesee County are hoping to
obtain over $180 million in outside
Genesee County reported having
23% 30%
funding over the next 18 months; on
difficulty obtaining outside funding Minimal Education/Training Programs Government Grants/Programs
average, this is 3x what they have
because they did not have access to
been able to obtain in the past. Small
the necessary network of individuals
or organizations who might invest
in their companies. Many investors
23% Strict Regulatory/Funder Requirements
or Eligibility 26% Foundation/Corporate Grants
business owners hope to secure this
capital from government loans through
Community Development Financial
20% 20%
say they would prefer a warm
Lack of Mentorship Other Individuals Institutions or the Small Business
introduction over a cold call, making
Administration, local programming, or
it difficult for business owners who
are outside of these networks to
initiate these funding opportunity
19% Lack of Access to Proper Advisors
20% Traditional Bank Financing
government programs like Community
Development Block Grants.
15% 13%
conversations. 28% of small business
Racism/Sexism High Net-Worth Individuals
reported difficulty obtaining outside
funding due to credit or collateral
requirements.
Sadly, business owners report that
14% Issues with Financial Records/Bookkeeping
10% Crowdfunding through Platform
racism is more of an obstacle to
accessing capital and resources for 10% Community Fundraiser
their business than issues with their
financial records or bookkeeping.
Systematic racism is in the fabric ART BEAUCHAMP ACE HARDWARE is a hardware store that
was opened in 1948 and is owned by Flint resident Sally Kagerer.
of the foundation of our country. The store has been located on Pierson Road since 1956, at which
We see noticeable proof in lack of point Pierson was simply a dirt road. Through all the changes
access to capital for entrepreneurs. since that time, Art Beauchamp Ace Hardware has been devoted
to serving its community. For example, at the onset of the
More transparently, financially pandemic, many were using home quarantine as an opportunity
disenfranchised Black communities. to complete home improvement projects. While many large
Businesses are suffering, and they hardware chains were closing, this store was able to cater to the
changing needs of the community, both by remaining open and
deserve better.” by expanding their already well-established website. While the dirt
EBONIE GIPSON road the store opened on 65 years ago has since been paved, Art
Business Coach & CEO of I’m Building Something Beauchamp Ace Hardware remains dedicated to the “North End”
Consulting LLC
neighborhood in which it resides in spite of it.
2021 | Genesee County Small Business Analysis Capital Needs of Small BusinessesImpact of COVID-19 on Small 60% of small businesses in Genesee County reduced
their hours of operation or employee hours. Reasons
Businesses in Genesee County
for this included: employees having increased
childcare responsibilities due to daycares and schools
being closed, needing to reduce the number of people
inside a physical business location, and needing to cut
The rapid onset of the COVID-19 pandemic caused a dramatic
overall operational costs.
shift in the way we live, work, and interact with other people. Small 55% of companies needed to temporarily close their
business owners needed to make large operational shifts to protect businesses. Reasons for this included: The inability to
operate virtually, their business being obsolete during the
their employees and customers. For example, many businesses pandemic, needing time to make changes to operations or
increased their online presence and employees transitioned to the physical location to make it safer to operate, and needing
to step away from the business because of increased childcare
working from home. However, some types of businesses are not able responsibilities.
to operate virtually; as a result, these companies needed to close
OPERATIONAL SHIFTS
completely until it is safe to operate in-person again. Additionally, 44% of small businesses in Genesee County had employees reporting to their
fixed costs like rent continued to increase. Several downtown regions business locations as they did prior to the pandemic. This corresponded with many
precautions, such as reduced staffing or changes in operations like curbside pickup,
will take longer to recover as some businesses decide to remain but many businesses needed employees to be at their physical location in order to
virtual instead of paying higher rents. As a result, the small business stay operational.
15% of small businesses must remain closed until after the pandemic is stabilized,
community has been split between traditional operations, hybrid
as they are not able to modify their operations in a way that keeps their employees
operations, fully-remote operations, temporary closure, and closure and the public safe. Most of these are businesses that include an event, gathering,
or indoor physical activity; in these cases, attempting to remain open while taking
for the foreseeable future. Now, over a year after the onset of the
the necessary safety precautions has been less cost effective than simply
pandemic, many are wondering when things will return to “normal.” remaining closed.
41% of businesses are operating virtually in some capacity.
3%
WORKING REMOTELY: TOUGH DECISIONS
The most common actions taken by small business owners during the pandemic were 10% 15% Shift in Operations
Due to the Pandemic
to reduce hours, temporarily close their companies, and finding any possible avenues
to reduce costs. We have to be closed
Employees are reporting to our
Actions Taken During the Pandemic BY PERCENTAGE OF BUSINESSES
17 % business location as they did prior
to the pandemic
60 %
55 % We are operating 100% virtually
48
We are a mixture of virtual and
% in-person
We are mostly virtual
34% 27% 11% 44%
We have always been virtual
9%
REDUCED TEMPORARILY BUDGET WORKING LAYOFFS NONE OF
HOURS CLOSED REDUCTIONS REMOTE THE ABOVE
THE BUSINESS
2021 | Genesee County Small Business Analysis Impact of COVID-19 on Small Businesses in Genesee CountyBUSINESSES HIT THE HARDEST In addition, many of these types
Understanding the net earnings of various of businesses aren’t on the top of
industries during the pandemic helps shed people’s minds when they think
light on types of businesses that might about “supporting their local small
need greater support in the coming years business community,” so it’s critical
as they recover from the pandemic. These to encourage residents in the region
industries were seeing growth and profits to expand their definition of “shopping
prior to 2020 and have since seen some local” to “doing business locally.”
of the largest losses during the pandemic.
A RETURN TO BUSINESS AS USUAL
Personal Care Among small businesses that have
Businesses such as beauty salons and been operating virtually, most owners
FLINT TRADING CO. is a unique gallery and shopping fitness centers, were unable to operate anticipate they will remain virtual for the
experience that offers limited edition art objects, home goods, for a portion of 2020 but are typically foreseeable future and are not actively
located in higher rent, downtown planning to return to a physical location.
and jewelry from local artists. Founded in 2018 by Walter
buildings. An additional hardship is the
McAdow, the company was poised for a successful year at
Return to Physical Location
32%
view that personal care is not a necessity,
the beginning of 2020. However, 2020 was an unexpected so many customers won’t return until
23%
challenge for the atelier and the company’s status as a new after the pandemic is completely over.
Income for personal care businesses
business. Unable to acquire PPP funding, Flint Trading Co. still
17%
was down 45% in 2020 – the largest
doubled down on achieving success by moving to a larger, decrease in income of any industry. When
more open space that would allow people to enter without an
10%
businesses reopened in summer of 2020,
appointment while still abiding by COVID-19 social distancing
guidelines. As a result, the store increased its sales by over
personal care providers had significant
costs to operate during a pandemic due 9% 9%
to supplies and operational shifts that
25% — including an increase in private commissions — despite were required to keep their customers
the decrease in walk-in business. Flint Trading Co. is the only safe. Overall, net earnings for personal
WINTER SPRING SUMMER FALL 2022 NEVER, WE HAVE
atelier in Flint that remains committed entirely to artist-made care businesses were down by over 100%.
2021 2021 2021 2021 DECIDED TO REMAIN
goods and truly custom-made items designed by locals. No VIRTUAL FOR THE
Art, Entertainment & Recreation FORESEEABLE FUTURE
matter what their customer’s budget, the handcrafted, custom Businesses in the art, entertainment
pieces honor and reflect the personal stories of their patrons. and recreation industry largely rely on Largely, these businesses are in the
gatherings of people and events. Many professional services industry, or
In the near future, Flint Trading Co.’s new space will allow it to
of these businesses cost more to operate otherwise had very small back offices
host small workshops for people that want to work alongside that shifted to virtual operations and can
during the pandemic than they would
artists and make their own pieces. Until then, and in the spirit be able to earn so many have remained easily stay that way. Business owners
and celebration of Flint’s many artists resilience during this closed during most of the past year. In are finding that many jobs that were
total, net earnings for Art, Entertainment significantly performed on the computer
pandemic, this special home goods and art object store is a
& Recreation businesses are down by have very successfully shifted to remote
testament to strength of the Flint community. positions. They have retained high
72% from prior to the pandemic.
productivity while greatly reducing costs
Construction related to maintaining office space.
Businesses in the construction industry
For business that are planning to
aren’t able to shift operations to operate
return to their physical location, most
virtually so were forced to remain closed
plan to return in spring and summer
until it was safer to work in person. In
of 2021.
total, net earnings for Construction
businesses are down by 59% from prior
to the pandemic.
2021 | Genesee County Small Business Analysis Impact of COVID-19 on Small Businesses in Genesee CountyYou can also read
