Strengthening Ohio's Communities

A major component of the role community Technical assistance can be best provided at agencies play in business expansion the local level because the success of programs is the enhancement of technological depends on the extent to which the provider capabilities and provision of technical understands and can meet particular business assistance. Community agencies are able needs. to assist firms and enhance their capacities because of their connections within the community and resources to provide technical assistance. Economic development occurs through this assistance to businesses because it stimulates those sectors with growth potential, capitalizes on linkages to existing area businesses, and emphasizes those particular strengths of the region which help make firms competitive (American Planning Association, 2008). It is important to have a community-based approach to technical assistance for these small firms in order to create relationships between the training provider and client that will be sustainable and reflective of the demands of clients (Klein, 2002).

Business Development One of the most important aspects of CED is the facilitation of microenterprise and entrepreneurship. Microenterprises are responsible for 17.3% of employment in rural areas of Ohio, as compared with 15.4% in urban areas of the state, according to data from the Association for Enterprise Opportunity (2010). In total, microenterprises are responsible for 18.1% of total private non-farm employment in Ohio. Of all business in the state, 86% are categorized as microenterprises. Estimates by the Aspen Institute indicate that there are 20 million Americans who operate microenterprises, and at least 10 million of these micro-entrepreneurs face significant disadvantages in establishing and operating their businesses (CFED, 2010).

Microenterprise plays a powerful role in communities as a source of business and economic development. The impact of microenterprise on communities, as well as on low-income individuals, has been demonstrated to increase access to capital, create jobs, increase household income, and decrease reliance on public assistance (Schmidt et al., 2006). At the community level, microenterprise development enhances local economies. These small businesses allow community members to shop locally, which increases the marketability of other local businesses (Else & Gallagher, 2000). Additionally, locally owned businesses return a larger share of revenue to the local economy, support other local businesses through the purchase of goods and services, and maintain a larger local payroll (Schmidt et al., 2006).

An important component of a nurturing business environment is the availability of micro-finance or small-business loans. These loans have a significant impact on increasing microenterprise Revolving loan funds have been, for and entrepreneurial opportunity. According to the some CAAs, a sustainable strategy U.S. Small Business Administration, most businesses to meet a continuous demand for rely on loans to provide the initial capital to open a financing in their communities. business or make capital improvements. However, there is still an unmet demand for financial support for microenterprise. It is estimated that only 2% of potential U.S. microfinance customers are being served compared to the 17% being served in the developing world (The Opportunity Fund, 2010).

Many CAAs have the resources and technological capabilities to support these loan programs and continue to meet this demand.

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