Winter 2016
SURVIVING AND PROSPERING IN TIMES OF CHANGE Reports from Small Business Owners, Merchants, and Entrepreneurs in the Silver Spring Region
Organized by the Silver Spring Regional Center and CASA
Table of Contents: Purpose and Key Findings
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Areas of Focus Takoma/Langley and Long Branch – The International Corridor
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Fenton Village
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Greater Lyttonsville
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Montgomery Hills
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Four Corners
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Background – Supporting Local Businesses
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Small Business Workshop Series
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February 26, 2016: Kick-off at the Silver Spring Civic Building
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March 9, 2016:
Takoma/Langley Area
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March 10, 2016:
Montgomery Hills and Four Corners Area
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March 11, 2016:
Fenton Village and Brookville Area
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March 22, 2016
Wrap-Up – Silver Spring Civic Center
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Conclusion
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Silver Spring Regional Commercial Hubs
Purpose and Key Findings In the spring of 2016, CASA and the Silver Spring Regional Center hosted a series of discussions with small business owners1 and other stakeholders to discuss ways to strengthen the capacity for independently and minority owned small businesses to survive and prosper in times of change. The discussions sought to identify shared interests and challenges, explore needed assets to support the survival of small businesses, and create an action plan to achieve the resources needed. The series included two large meetings of small business owners from all six commercial hubs at the Silver Spring Civic Center. Those discussions were supplemented by focused area conversations in Long Branch, Montgomery Hills, and Fenton Village to dive deeper into the issues business owners in each neighborhood face.
Neighborhoods Within the Silver Spring Regional area this report focuses on six commercial hubs: Takoma/Langley, Long Branch, Fenton Village, Montgomery Hills, Greater Lyttonsville, and Four Corners. The greater Silver Spring Regional Area is one of the most diverse areas in Montgomery County2 and in the State of Maryland3. The small business climate of each area is reflective of the diversity and vibrancy of the residents living in these neighborhoods. They not only offer a variety of restaurant and service options but include manufacturing and light industry. Each commercial area has an established identity but businesses are sufficiently precarious to be at risk of disruption by redevelopment.
Takoma/Langley and Long Branch – The International Corridor The Takoma/Langley and Long Branch commercial areas fall within the International Corridor, a culturally diverse stretch along University Boulevard and Piney Branch Road that spans both Montgomery and Prince George’s County. Takoma/Langley and Long Branch residents represent over 50 countries. Latinos, with origins in Central America, are the dominant ethnic group with smaller, but still diverse populations that hail from Asia, West Africa, and the Caribbean. That diversity is further reflected in the nearly five hundred small businesses that populate the area’s shopping centers. These businesses have helped shape a local economy that provides jobs, goods, and services that cater primarily to the local, immigrant population. 4
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“Small businesses” refers to local and independently owned commercial enterprises that sell goods or services. https://www.sba.gov/sites/default/files/FAQ_March_2014_0.pdf 2 https://countystat.maps.arcgis.com/apps/MapJournal/index.html?appid=44330b45b2324ad795e0d16f2f6af2d6 3 http://www.census.gov/quickfacts/table/PST045215/2472450 4 Long Branch Sector Plan and the Takoma/Langley Sector Plan-http://www.montgomeryplanning.org/community/longbranch/documents/Long Branch Sector Plan reduced size - Approved and Adopted Low (3-19-14).pdf
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Fenton Village Often called the “hidden gem” of Silver Spring, Fenton Village features over 200 eclectic and diverse businesses.5 Locksmiths, shoe repair, tailoring, auto repair shops, and a diverse array of ethnic restaurants line the streets between Wayne Avenue to the north, Georgia Avenue and Fenton Street to the east and west, and Sligo Avenue to the south.6 Fenton Village is predominantly a commercial area, but the area’s Master Plan calls for increased height to accommodate mixed use zoning and the construction of residential buildings with first floor storefronts, adding pressure to the existing communities. 7
Greater Lyttonsville Greater Lyttonsville has a vibrant and diverse population that is reflected in the commercial establishments in the area. According to the Greater Lyttonsville Sector plan and the 2010 U.S. Decennial Census, Greater Lyttonsville has a population of 8,121 people. Greater Lyttonsville is more racially diverse than the County as a whole. In 2012, the population was 35 percent African American, 30 percent non-Hispanic white, and 24 percent Hispanic compared to 17 percent, 49 percent, and 17 percent, respectively, countywide. The small business community reflects this diversity. Professional and technical service providers make up the largest share (18 percent) of business establishments in Greater Lyttonsville. Area companies in this category include mostly small to mid-sized firms providing legal, architectural, software, computer systems design, landscape architects, interior design, photography, marketing, research & development, management consulting and other services. Business and household services (including landscaping, cleaning, recycling, staffing agencies) account for 13 percent of area companies. Greater Lyttonsville also has 57 construction companies providing a broad range of building, remodeling, and specialty trade services to commercial and residential markets. These firms are primarily concentrated in the Brookville Road area. 8
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http://www.mymcmedia.org/silver-spring-regional-director-talks-taste-the-world-in-fenton-village-video/ http://takomavoice.com/2014/01/30/fear-in-fenton-village/ 7 Silver Spring- Takoma Park Master Plan http://www.montgomeryplanning.org/community/plan_areas/silver_spring_takoma_park/master_plans/nw_ss/nw_ss_toc.shtm 8 Greater Lyttonsville Sector Plan – http://www.montgomeryplanning.org/community/lyttonsville/documents/lyttonsville_briefing_book.pdf 6
Surviving and Thriving in Times of Change, Winter 2016
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Montgomery Hills The Montgomery Hills Commercial Center, located along both sides of Georgia Ave between the Capital beltway and 16th Street, is an older commercial area. Georgia Avenue is a seven lane highway that carries more traffic than any non-interstate road in Montgomery County (85,000 cars per day).9 The area is surrounded by established neighborhoods such as Lyttonsville, Linden, and North Woodside-Montgomery Hills. A current State Highway Administration study is examining how to resolve the major challenge facing the small businesses in the area: how best to accommodate the high level of traffic in the area and still establish a “sense of place�. 10
Four Corners According to the 1996 Four Corners Master Plan, Four Corners is made of up five distinct neighborhoods with closed-in residential areas, local convenience shopping, schools, and parks. The Commercial district, at the intersection of Colesville Road and University Boulevard is the heart of the community, as well as the entry point to the surrounding residential neighborhoods. 11
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Montgomery Hills Proposed Concept. http://www.montgomeryplanning.org/community/plan_areas/silver_spring_takoma_park/master_plans/nw_ss/montgom_hills.pdf 10 The purpose of the MD 97 Montgomery Hills Project Planning Study is to establish a balanced approach to transportation within the Georgia Avenue corridor by evaluating existing vehicular, pedestrian, and bicyclist mobility and safety while accommodating proposed transit enhancements and establishing a sense of place* within the Montgomery Hills community. http://apps.roads.maryland.gov/WebProjectLifeCycle/MO224_11/HTDOCS/Documents/Location_Design/MD 97 Montgomery Hills Hearing Brochure.pdf 11 Four Corners Master Plan http://www.montgomeryplanning.org/community/plan_areas/silver_spring_takoma_park/master_plans/4corners/documents/high_4corners.pdf
Surviving and Thriving in Times of Change, Winter 2016
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Background – Supporting Local Businesses
Figure 1 Business 2 Community: This graphic illustrates the power of investing $10 in locally based small businesses. www.business2community.com/trends-news/how-supporting-a-local-small-business-benefits-you096248#1smdFPk2lKO1jKcD.97
Supporting local small businesses through patronage and favorable public policies results in positive outcomes for the local economy. A Canadian study evidenced that each dollar invested in independent businesses generates more dollars in economic activity than spending that same amount of money at a chain retailer.12 The research found that for every $1,000,000 in sales, independent retail stores generate $450,000 in local economic activity, compared to just $170,000 for chains and independent restaurants generated more than twice as much as chain restaurants. Compared to chains, independent restaurants and businesses together generated about 2.6 times more local jobs. The study concluded that a shift of just 10 percent of the market from chains to independents would produce 31,000 jobs paying $940 million in annual wages to workers in British Columbia.13 This benefit is primarily generated by the degree to which the economic activity surrounding the independent businesses remains in the local economy and gets cycled through employers, employees, service providers, government agencies and a host of other players. In addition to generating more local economic activity, small business owners become more invested in the communities they do business. Immigrants in particular are likely to establish their own businesses, resulting in campaigns across the country to attract immigrant entrepreneurs as a revitalization strategy. Immigrants 12
“Independent BC: Small Business and the British Columbia Economy� February 2013 http://nebula.wsimg.com/31f003d5633c543438ef0a5ca8e8289f?AccessKeyId=8E410A17553441C49302&disposition=0&alloworigin=1 Id.
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are two times more likely to open a new business compared to the native born populations.14 The American Immigration Council writes “while immigrants made up 13 percent of the country’s total population, 16 percent of the labor force, and 18 percent of business owners overall in 2013, immigrants were 28 percent of “main street” business owners nationally. They were even more over-represented in particular types of businesses: they were 61 percent of gas station owners, 58 percent of dry cleaner owners, 45 percent of nail salon owners, 38 percent of restaurant owners, and 32 percent of both jewelry and clothing store owners.15 Locally, research performed by CASA with small businesses on the international corridor has found that while small businesses are diverse and long standing with strong connections to the residential community, they are highly vulnerable to rent increases and a lack of property ownership.16 This project presented an opportunity to explore whether these concerns remain 5 years later and across broader swathes of the Silver Spring Regional Area,
14
See Gateways for Growth partnership between Partnership for a New American Economy and Welcoming America. http://www.renewoureconomy.org/home/gateways-for-growth-challenge/ for a list of participating cities. 15 http://immigrationpolicy.org/special-reports/entrepreneurship-and-innovation-welcoming-cities-lessons-chicago-dayton-and-nashvill 16
The International Corridor: Portrait of a Threatened Small Business Community - How the Purple Line Can Break or Build a Neighborhood. CASA 2011. Available from author.
Surviving and Thriving in Times of Change, Winter 2016
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Small Business Workshop Series Kick-off at the Silver Spring Civic Building February 26, 2016 The kick-off was attended by over 32 participants (see appendix); representatives of 15 small businesses and over 17 technical support providers with a handful fitting into both categories. The group divided into a discussion for business owners and one for providers. Key Takeaways • There is an enormous disconnect between small business owners and providers that seek to provide services to them. Small business owners are unfamiliar with the services and lack the time to see them out. Technical support providers wonder why their services have not been sought. Small business owners described that they would be most interested in recruiting an experienced business owner to mentor them in navigating the system. • Marcie Wolf-Hubbard, a local artist, asked about the Arts and Entertainment designation and wonders what Montgomery County, businesses, and Silver Spring are doing to support artists • Rossana Espinoza, Small Business Development Manager at the Latino Economic Development Corporation (LEDC) understands why small business people do not know/trust the many resource partners that exist around the County. She stated that as providers, we MUST get out of our offices and into the community to build that trust. Mayra Bayonet of the Hispanic Chamber of Commerce echoed the sentiment by stating that visits to the commercial areas and personally engaging the business owners to learn about their issues help to get them involved • Althea Grey-McKenzie, owner of a home-based business, had a wonderful experience attending the workshop, but wondered how to address the challenge that many businesses are virtual and often do not have a store-front; they are harder to find but similarly impacted by changing times • Celeste Mitchell, a marketing entrepreneur, learned that small business owners need help with marketing, but in speaking with owners and looking at their websites, she has discovered that they are not quite at the level of sophistication that she regularly provides • Technical assistance providers committed to walking the neighborhoods. Paul Grenier from Montgomery Housing Partnership will walk Long Branch. Mayra Bayonet will walk Four Corners • Celeste Mitchell suggested pulling together a resource list of organizations for providers and business owners to help bridge the gap between the groups. • Rosanna Espinoza recommends that we bring the groups together again for a networking event to bridge the gap between small business owners, entrepreneurs and merchants and technical support providers. ”It was useful to have the separate conversations, but it would have been helpful to have a little more opportunity to dialog across the two groups. I hope there will be future opportunities to continue the conversations.” • Pete Tan, a manager at Silver Spring Inc., a branding and marketing company, suggested to “use technology to make future sessions accessible online via webinar”. 8 Surviving and Thriving in Times of Change, Winter 2016
Takoma/Langley Area March 9, 2016 The Long Branch – Takoma/Langley areas gathering, held on March 9th, was attended by 10 small business owners and community stakeholders (see appendix). The conversation centered on the services offered in Long Branch and the strong sense of identity the businesses and community have created. Long Branch is composed of people from many parts of the world and the business community reflects the same diversity. Community based organizations and technical support providers have created a sense of trust with the business community and together organize festivals, events and mural paintings to put the Long Branch identity and sense of community front and center. Key Takeaways • Participants of the focus area gathering cited a misconception of Long Branch being a violent neighborhood as a deterrent to attracting traffic from other areas • Long Branch is not a destination where people can park and shop around. Small parking lots serve the businesses they are attached to and towing is enforced at different intensities. Shared parking would help drive more clients to the area who would then explore and shop around • Long Branch will be served by two proposed stations of the Purple Line and its construction will have a major impact on the neighborhood. It will be one of the only places with a tunnel • There are a lot of great things happening in Long Branch but its taking time to attract people from other areas of the region • A lot on the corner of Arliss St. and Flower Branch should be developed as a County owned public parking lot • Many things can be improved in Long Branch. Parking spaces can be shared and business owners can help promote neighboring businesses.
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Montgomery Hills and Four Corners Area March 10, 2016 The focus area gathering for the Montgomery Hills and Four Corners commercial areas was held at Casa del Mofongo on March 10. Six small business owners and community stakeholders attended the gathering (see appendix).
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Key Takeaways: • There are many infrastructure changes coming to the smaller commercial hubs in greater Silver Spring and unfortunately the business owner community has not been engaged enough to impact the results of the studies. Montgomery Hills is being reviewed by State Highway Administration for a possible widening of Georgia Avenue • Commerce in the area has been more densely centralized as the need for more Silver Spring residential spaces has grown. The number of homes has increased in the neighborhoods as the number of businesses serving the area has decreased. People are going to downtown Silver Spring for their needs The neighborhoods have schools and other long established businesses but there is not enough being done to market and refine the identity of the two commercial areas Technical support providers help by visiting the commercial areas and personally engaging the business owners. “The input of the business owners is very important, so we have to create programs so they can learn and see their businesses succeed. They are an important part of our community.” But there is still greater need for providers to connect and build trust with small business owners as the neighborhood strengthens its identity The neighborhood is in the stage of forming its neighborhood identity and marketing that to the greater region. Pete Tan has created a directory for the area, but more needs to be done to further promote it as a destination A Multipurpose center modeled after the home ownership centers in Maryland could be a solution to addressing the various needs faced by the small business owner community. It’s important for organizers to identify the best method of communication to contact the small business owners. Would texting be a possible solution Participants propose walking tours of the neighborhood or library tours to help strengthen the small business association that exists in the area.
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Fenton Village and Brookville Area March 11, 2016 The focus area gathering for the Fenton Village and Brookville/Lyttonsville commercial areas was held at Abyssinia on March 11th, 2016. Six small business owners and community stakeholders attended the gathering (see appendix). Fenton Village is a neighborhood with a strong sense of identity. The small businesses see themselves as neighbors and are part of the civic association. Building that cohesion has taken time and hard work but great events have been created such as, the Block Party and Taste the World, to best represent the diversity and resilience of the community. Fenton Village is really where art is life and life is art. Key Takeaways • Fenton Village has a history of civic organizing and small business cohesion. The community faces challenges with the upcoming Purple Line and there is a need to build trust between community stakeholders and the business community • Government agencies have sometimes competing requirements and small businesses need more information about their legal rights. Business owners feel they are sometimes cited for contradictory violations. An agency, such as the fire department, will order a business owner to institute a change in order to keep their occupancy license while another agency will ask them to do the opposite or something completely different. Business owners want legislative and regulatory reform so that they have greater rights in these circumstances • Building trust between small business owners and the community based organizations and technical support providers is a critical component to resolving issues together, especially on Bonifant Street where the Purple Line will run. If there is no grassroots support it’s difficult for community organizations to gain support from small business owners. Rebuilding that trust will help people to feel that their point of view matters and they are not second class citizens • Organizations, residents, business owners, and the local government need to plan for long term community investment. It will take time to initiate and maintain relationships in the area • The Purple Line and housing redevelopment can have a negative impact on the community if people are not organized • Better communication is needed, including for discussions of this type
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Wrap-Up – Silver Spring Civic Center March 22, 2016 The wrap-up meeting was held at the Silver Spring Civic Center on March 22nd, 2016. Twenty one small business owners and community stakeholders attended the gathering (see appendix). Staff from CASA and the Silver Spring Regional Center reported back on the kick-off meeting and the three focus area meetings. New participants, many of them small businesses or staff from support organizations, attended the final wrap up session. Recommendations on moving forward • Participants suggested having a local and independent business owner networking event to connect with the community, capture feedback, and walk the streets to get to know the businesses in the commercial areas of Greater Silver Spring. • Local and independent small business owners were suggested to get involved in planning activities and with established institutions such as the Greater Silver Spring Chamber of Commerce and other providers. • Providers, business associations, and local government must be creative and collaborative to resolve issues facing each neighborhood. Holding each other accountable and engaged is the key. Resolving issues such as shared parking, absentee small property owners, and hiring locally can help these local and independent business owners, merchants, and entrepreneurs thrive in times of change. • There is urgency for small businesses given the prospect of the Purple Line. Motivating businesses to act on their futures is imperative, but the challenges are great. Trust and understanding what resource partners will or won’t be able do for businesses is essential. • Rebecca Silvestre, owner of Legal Shield, also emphasized the importance of continuing to have these conversations. “Moving forward, having this conversation on a more regular basis would help the business owners know there is support for their needs.” • Participants asked for more opportunities to network and connect with other small businesses and providers. Paul Grenier summarized – “I found helpful [what we have] heard from the small businesses. For example, that they prefer to learn from other businesses in the same sector. And they’re concerned with parking.”
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Conclusion: Small business owners in the Silver Spring regional area face a number of shared challenges and interests. The workshop series confirmed the most pressing challenge is the uncertainty of planned transportation and infrastructure developments that threaten to limit customer access. Each commercial hub has its own identity and set of challenges. Small businesses are hungry for better access to and understanding of resources that can help them succeed. As research has shown, investing in the viability of existing small businesses is well worth it in the long run. Connections and relationships strengthened in this process can form the basis for continuing dialogue among the businesses and the technical service providers in these commercial hubs. CASA and the Silver Spring Regional Center thank all the participants and contributors that helped shape this document.
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