The Roundup: What Are the Big Issues Facing Small Businesses?
What's up, South End?
Budget season is here. Last week, we did a deep dive into what the mayor's budget proposal means for the South End. Public safety was top of mind, and we also recently interviewed Wilson on her plan to address gun violence.
This week, I want to look at budget season from a different angle: small business.
With Tutta Bella closing its Columbia City location Friday, and with the shifts and changes we've seen in Columbia City and all around the South End recently, I'm curious. What is the current state of small businesses in our neighborhood, and what can city officials do during budget season to assist?
Laura Clise is the founder and CEO of Intentionalist, a nonprofit dedicated to supporting small businesses in Seattle.
Intentionalist recently published a survey of 174 small businesses in Seattle that found what Clise describes as a "small business recession."
I spoke with Clise about what this means, what the survey said about South End small businesses, and what officials can do this budget season to support small biz in our community.
This interview has been lightly edited for length and clarity.
MD: Y'all recently did a survey. It covers small biz in Q1 and Q2 of this year. Can you give me a little bit of background about what this survey is?
LC: This is a follow-up to a survey we did last year. It was prompted by a growing feeling we had that small businesses were in crisis, and yet there didn't seem to be a lot of data to quantify the magnitude and the nature of the struggles that main-street brick-and-mortar small businesses were experiencing.
For the Q1 survey, we heard back from 136 businesses, and two-thirds of them indicated that they were experiencing greater financial stress now than during the peak pandemic. For Q2, we were curious if we would see a change with summer and the World Cup. We heard from 174 businesses and didn't see a significant change.
MD: A term I saw in your survey was "small business recession." Can you explain what that means and what in your findings led you to that conclusion?
LC: Admittedly, I'm taking some liberties with the word recession, which many people likely know is most accurately associated with an assessment of macroeconomic conditions. But I think that it's important to try to convey the severity of the hardship and challenges that small businesses face. As we looked at the responses around the acute financial strain, around decrease in how long small businesses expect they can continue to operate if conditions remain the same, as well as a growing number of business owners who reported that they either cut their own wages or were not paying themselves at all in order to keep their businesses afloat — the reality on the ground is that small businesses continue to struggle to survive. They aren't bouncing back. They aren't seeing relief.
We chose the word "recession" because it's provocative, but also because it's something people can wrap their minds around. It is also used to indicate cause for real concern and thoughtful intervention.
MD: Your data set is citywide, but I noticed representation from a few South End neighborhoods. What stood out to you in responses from South End businesses?
LC: Of the 174 businesses represented, 44 were from the South End. What I think is important to point out here is that 84% of the South End respondents are grossing less than a million dollars a year. So when we say small-business owners are cutting their own pay, these are not folks who have a lot to begin with.
What South End businesses have in common with the overall population is that it's a struggle and it isn't getting easier. What is a little bit distinct for South End businesses is what they say they need most. Citywide, the biggest ask is cost relief — taxes and fees. In the South End, the top priority is foot traffic, marketing, and more customers.
MD: That makes sense. We don't get tourists or the downtown lunch crowd. What can be done to support these businesses? And, like the rest of the city, taxes and fees are impacting South End businesses too. What can city officials do to alleviate those stressors?
LC: We have to start with awareness. Just because a business appears to be OK doesn't mean it actually is. During the pandemic, we rallied around our small businesses, then when it was over, we went back to our lives, and the businesses never recovered. We need intentional mobilization to support businesses in our communities.
As for fees, there are four things bubbling to the top. The first is the tip credit. It is understood that this administration is not likely to engage on that front, and yet I mention it because it was mentioned repeatedly in the response to the survey. That aside, the sales tax increases affect local businesses. Other permits and fees, which I know is something that the mayor and the Office of Economic Development are taking a look at. In addition, small businesses have raised what utility cost relief could look like. Also, looking for ways to have tax relief associated with small businesses that are providing healthcare for their employees.
MD: If there was one thing city officials could do this budget season to significantly support small businesses, what would it be?
LC: Affordability. I know it is a priority for this administration, and it has become increasingly unaffordable for main-street brick-and-mortar small businesses to survive. But it's so hard to point to just one thing. When you get small businesses talking, they're able to identify a death by 100 cuts.
The Roundup Rundown
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🏛️ Need-to-Know Politics
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🖼️ In the Arts
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🖼️ Pencil It In: Graham Block Party!
Oct. 3, 11 a.m. to 3 p.m., at the corner of Martin Luther King Jr. Way and South Eddy Street. Come say hi to the Emerald and get some swag at our table!
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This is an abbreviated version of The Roundup newsletter. To get the entire newsletter, including a weekly list of events to check out and my shout-out to South End Gems, subscribe here. See you next week!
Mike Davis is the newsletter editor and Voices editor at the South Seattle Emerald. Born and raised in Seattle's South End, Mike is a longtime journalist who's covered everything from arts and culture to sports to politics.
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