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2019 SMALL BUSINESS AND

ITS IMPACT ON GEORGIA


TABLE OF CONTENTS Why Small is Great . . . . . . . . . . . . . . . . . . . . . . . . . .

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Georgia by the Numbers . . . . . . . . . . . . . . . . . . . . . .

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Georgia Business Rankings . . . . . . . . . . . . . . . . . . . .

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Georgia Demographic Profile . . . . . . . . . . . . . . . . . . .

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Georgia Small Business Employment . . . . . . . . . . . . .

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Industry Spotlight | Automotive . . . . . . . . . . . . . . . .

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Automotive Outlook for 2019 . . . . . . . . . . . . . . . . . . .

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Forestry Outlook for 2019 . . . . . . . . . . . . . . . . . . . . .

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Industry Spotlight | Forestry . . . . . . . . . . . . . . . . . . .

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Industry Spotlight | Wine . . . . . . . . . . . . . . . . . . . . .

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Industry Spotlight | Golf . . . . . . . . . . . . . . . . . . . . . .

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About the UGA SBDC . . . . . . . . . . . . . . . . . . . . . . . . .

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Our Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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1 | SMALL BUSINESS AND ITS IMPACT ON GEORGIA


FIGURES 1. Business Ownership by Demographic . . . . . . . . . .

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2. Self-Employment Rates by County . . . . . . . . . . .

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3. Georgia Business Employment . . . . . . . . . . . . . .

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4. Small Firm Employment by Industry. . . . . . . . .

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5. Vehicle Parts Manufacturing Employment . . . . . .

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6. Wine Industry Impact on Georgia’s Economy . . . .

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7. Golf Course and Club Employment . . . . . . . . . . .

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SMALL BUSINESS AND ITS IMPACT ON GEORGIA | 2


WHY SMALL IS GREAT

E

ntrepreneurial ventures provide hundreds of thousands of jobs in Georgia for both business owners and employees. Small businesses not only supply principal incomes for families, but also meet unique needs for part-time employment, temporary employment, supplementary income, or, for many young people, that first job opportunity. The innovation and creativity that entrepreneurs deliver to the marketplace appear in all types of businesses, and whether high tech or personal services, these engines of economic growth are found in every big city and small town across our state. The University of Georgia Small Business Development Center (UGA SBDC) assists thousands of entrepreneurs every year across our state. As an educational extension program of the University of Georgia, the U.S. Small Business Administration and our partnering institutions (Georgia State University, Kennesaw State University, Clayton State University, Valdosta State University, Georgia Southern University, and the University of West Georgia), the SBDC provides management training and one-on-one assistance to small business owners and prospective entrepreneurs. Over the past five years, individuals who have sought assistance from the SBDC have created more than 1,700 new businesses, added more than 13,000 jobs,

3 | SMALL BUSINESS AND ITS IMPACT ON GEORGIA

raised more than $885 million in loan and equity financing, and generated over $9.7 billion in sales. According to the latest impact study, firms that have sought UGA SBDC assistance experienced job growth of 20.3 percent versus the typical Georgia firm which increased employment by only 1.9 percent.

Small firms and their distinctive offerings provide custom products and services that are otherwise unavailable, are a convenience for residents and visitors to our state, and help create the community character and local charm that defines our ‘hometowns.’ We believe in the strength of small business and have produced this report to describe some of the impacts small businesses have in Georgia. This publication provides an overall perspective of Georgia’s small business environment and shines the spotlight on several noteworthy industries. Most importantly, this publication helps illuminate the contributions made by Georgia’s entrepreneurs on the economic well-being of all Georgia citizens.


GEORGIA BY THE NUMBERS 1.1 M

89%

Small Businesses

99.6% of all Businesses are Small

of State Exporters are Small Businesses

1.6 M

43%

3.6%

Small Business Employees

of all Private-Sector Employees

Rate of Economic Growth

Source: “Small Business Profile – Georgia.” U.S. Small Business Administration, Office of Advocacy, 2019.

SMALL BUSINESS AND ITS IMPACT ON GEORGIA | 4


GEORGIA BUSINESS RANKINGS

Source: 1 “2018 Business Climate Rankings,” Site Selection Magazine, Aug. 2018. 2 “Best States to Start a Business,” WalletHub, July 2019. 3 “Best States for Business, 2018 Ranking,” Forbes Magazine, Nov. 2018. 4 “America’s Top States for Business in 2019,” CNBC, July 2019.

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#1

Top Business Climate1

#3

Best State to Start a Business2

#6

Best State for Business3

#7

Top State for Business4

Site Selection

WalletHub

Forbes

CNBC


#1

Small Business Climate1

#2

Most Startups by Women2

#9

Overall Best State Economy3

#12

NFIB

American Express

WalletHub

Top State for Exporting4 Trade & Economic Analysis

Source: 1 “2018 Business Climate Rankings,” NFIB, Nov. 2018. 2 “Number of Women-Owned Businesses,” American Express, Aug. 2018. 3 “Overall Best State Economies,” Wallethub, June 2018. 4 “America’s Top 20 Export States,” Trade & Economic Analysis, Sept. 2018.

SMALL BUSINESS AND ITS IMPACT ON GEORGIA | 6


GEORGIA DEMOGRAPHIC PROFILE G

eorgia continues to see a wide range of diversity among the state’s business owners. According to the most recent survey data (2016) from the U.S. Census Bureau, the number of female-owned businesses with paid employees has grown 1 percent from the previous year, with the addition of 748 new businesses.1 In The 2017 State of Women-Owned Businesses Report by American Express, Georgia ranked fifth in the nation for states where women-owned businesses have increased their economic clout within the last 10 years. Economic clout is defined as the growth in the number of firms and growth in employment and revenues.2 The number of minority-owned businesses with paid employees has increased with the addition of 2,616 new businesses.1 Georgia ranks fifth in the nation for states with the most minority-owned businesses.3 With Georgia’s business friendly environment and historical results, we can expect to see women-owned and minority-owned businesses continue to grow in both numbers and influence.

Sources: 1The 2017 State of Women-Owned Businesses Report. American Express OPEN, 2017. | Owners.” U.S. Census Bureau, 15 Dec. 2015. | 3“Minority Businesses by State,” Maxfilings, 2019.

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2

“2012 Survey of Business


FIGURE 1 GEORGIA BUSINESS OWNERSHIP CHANGE BY DEMOGRAPHIC AFRICAN-AMERICAN

+39.7%

ASIAN PACIFIC ISLANDER

+23% -38.7%

HISPANIC

+73%

NATIVE AMERICAN

+1.7%

MINORITY NON-MINORITY

+41.1% -10.6%

FIGURE 2 GEORGIA SELF-EMPLOYMENT PERCENTAGE BY COUNTY

Source: “Small Business Profile - Georgia.” U.S. Small Business Administration, Office of Advocacy, 2016. Web.

SMALL BUSINESS AND ITS IMPACT ON GEORGIA | 8


GEORGIA SMALL BUSINESS EMPLOYMENT

FIGURE 3 1- 19 EMPLOYEES

100 - 499 EMPLOYEES

20 - 99 EMPLOYEES

500+ EMPLOYEES

F

or the sixth straight year, the state of Georgia’s economic growth rate has outpaced the national average.1 According to the University of Georgia Selig Center for Economic Growth’s 2019 Georgia Economic Outlook, the fastest job growth will occur in construction, followed by education and health services, leisure and hospitality, professional and business services, and mining and logging industries.1 According to the U.S. Small Business Administration, there are over 1.1 million small businesses in Georgia, making up 99.6 percent of all Georgia businesses. One million six hundred thousand people are employed by small businesses in Georgia, which is just over 43 percent of Georgia’s private workforce.2 Small businesses continue to add more jobs to the Georgia economy. In 2016, small businesses created 71,103 net jobs.2 The largest gains were seen in businesses with fewer than 20 employees.2 For 2019, Georgia’s unemployment rate is expected to average around 3.9 percent, lower than 2018’s average of 4.1 percent.1 Sources: 1Humphreys, Jeffrey M, and Beata D Kochut. The 2019 Georgia Economic Outlook. UGA Terry College of Business, Selig Center of Economic Growth, Athens, GA. | 2“Small Business Profile – Georgia.” U.S. Small Business Administration, Office of Advocacy, 2019.

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GEORGIA BUSINESS EMPLOYMENT BY SIZE OF ESTABLISHMENT

15% 15% 57%

1.6 MILLION Small Business Employees

12%

1.1 MILLION Small Businesses in Georgia

Source: “2016 SUSB Annual Datasets by Establishment Industry.” Statistics of U.S. Businesses, U.S. Census Bureau, April 2019, Accessed 19 Aug. 2019.


SMALL FIRM EMPLOYMENT BY INDUSTRY

FIGURE 4

INDUSTRY

EMPLOYMENT SMALL FIRMS

TOTAL FIRMS

SMALL FIRM % OF INDUSTRY

ACCOMMODATION AND FOOD SERVICES

250,822

421,223

59.5%

110,795

379,545

29.2%

AGRICULTURE/FORESTRY/FISHING/HUNTING

7,207

7,729

93.2%

ARTS/ENTERTAINMENT/RECREATION

30,050

48,413

62.1%

CONSTRUCTION

135,765

171,834

79.0%

EDUCATIONAL SERVICES

44,542

85,987

51.8%

FINANCE AND INSURANCE

53,629

177,532

30.2%

HEALTH CARE AND SOCIAL ASSISTANCE

219,755

497,019

44.2%

568

568

100.0%

INFORMATION

25,282

120,699

20.9%

MANAGEMENT OF COMPANIES/ENTERPRISES

10,325

131,006

7.9%

MANUFACTURING

125,887

367,902

34.2%

2,773

4,501

61.6%

134,491

159,287

84.4%

SERVICES

151,174

263,554

57.4%

REAL ESTATE AND RENTAL/LEASING

37,814

62,742

60.3%

RETAIL TRADE

144,608

485,488

29.8%

TRANSPORTATION AND WAREHOUSING

43,323

182,614

23.7%

UTILITIES

6,532

24,832

26.3%

102,550

211,958

48.4%

1,637,892

3,804,433

43.1%

ADMINISTRATIVE SUPPORT/WASTE Source: 1“2016 SUSB Annual Datasets by Establishment Industry.” Statistics of U.S. Businesses, U.S. Census Bureau, April. 2019, Accessed 19 Aug. 2019.

MANAGEMENT/REMEDIATION SERVICES

INDUSTRIES NOT CLASSIFIED

MINING/QUARRYING/OIL & GAS EXTRACTION OTHER SERVICES (EXCEPT PUBLIC ADMINISTRATION) PROFESSIONAL/SCIENTIFIC/TECHNICAL

WHOLESALE TRADE

TOTAL

SMALL BUSINESS AND ITS IMPACT ON GEORGIA | 10


INDUSTRY SPOTLIGHT: AUTOMOTIVE FIGURE 5

%

27 %

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8%

Sources: Number of Firms, Number of Establishments, Employment, and Annual Payroll by Enterprise Employment Size for States, NAICS Sectors: 2015. US Census Bureau, 2015 County Business Patterns, 2015 Statistics of US Businesses, 29 Sept. 2017.

% 19

46

MOTOR VEHICLE PARTS MANUFACTURING EMPLOYMENT IN GEORGIA


S

ince 1909, Georgia has been an established automotive manufacturing center in the United States. Currently home to more than 300 automotive-related facilities, the industry contributes $3 billion annually in gross state product. The industry continues to thrive due to the state’s businessfriendly climate and key factors including: prime southeast location, low cost of doing business, skilled workforce and low corporate tax rates.1 Over the last five years, Georgia’s automotive industry has continued to grow with the addition of 108 new automotiverelated companies, creating a total of 8,775 new jobs.2 The industry makes up 1.7 percent of the state’s overall economy and contributes to 4.3 percent of the state’s total labor force.3 In the United States as a whole, 96 percent of all automotive establishments are small businesses (defined as businesses with less than 500 employees). Narrowing by sector, 81 percent of motor vehicle manufacturing businesses and 96 percent of vehicle parts manufacturing businesses are considered small.3 In Georgia, small businesses in the automotive industry produce a large impact on the state. The automobile manufacturing sector in Georgia is comprised of 85 percent small businesses. Businesses with 1-19 employees accounted for 71 percent and businesses with 20-99 employees accounted for 14 percent of businesses in the industry.4 The parts manufacturing sector is comprised of 92 percent small businesses. Businesses with 1-19 employees accounted for 46 percent, businesses with 20-99 employees accounted for 19 percent, and businesses with 100-499 employees accounted for 27 percent of businesses in the industry.4 The success of Georgia’s automotive industry relies heavily on the state’s transportation systems and efficient logistics operations. The Hartsfield-Jackson Atlanta International Airport is the world’s busiest airport.2 The Port of Savannah’s eastern

seaboard rankings include #1 in shipments from Asia and #2 in shipments from Europe. 2 Additionally, the Port of Brunswick is the fastest growing auto port in the Southeast and the second busiest U.S. port for total roll-on/roll-off cargo (wheeled cargo such as cars, trucks, semi-trailer trucks, trailers, and railroad cars, that are driven on and off the ship on their own wheels).2 Approximately 80 percent of the nation’s consumer markets are accessible within a two-day drive or two-hour flight. It is easy to see why Georgia ranks as #1 in distribution and supply chain hubs and #2 for infrastructure and access to global markets in the United States.2

220,310 Total Auto Jobs in the State

$11.22 B Labor Income

Sources: 1“Georgia Automotive Industry,” Georgia Department of Economic Development, accessed Aug. 27, 2019. | 2“Georgia Automotive Industry,” Georgia Department of Economic Development, accessed Aug. 27, 2019. | 3”Contribution of the Automotive Industry to the Economies of All Fifty States and the United States,” CAR: Center for Automotive Research, accessed Aug. 26, 2019. | 4 Number of Firms, Number of Establishments, Employment, and Annual Payroll by Enterprise Employment Size for States, NAICS Sectors: 2015. US Census Bureau, 2015 County Business Patterns,

SMALL BUSINESS AND ITS IMPACT ON GEORGIA | 12


AUTOMOTIVE OUTLOOK Jeffrey M. Humphreys, Ph.D. Selig Center for Economic Growth University of Georgia

U

nit sales of both new and used cars as well as SUVs and light trucks to consumers will decline slightly in 2019. Sales simply have reached levels that will be hard to sustain, especially as lenders continue to tighten credit conditions for auto loans due to rising default rates on such loans. In addition, financing costs will rise in 2019. Nonetheless, larger gains in households’ disposable personal income, more jobs, better fuel efficiency, and the aging vehicle fleet will be powerful drivers of automobile sales in 2019, and will prevent sales from declining very dramatically. The average light vehicle is 11.6 years old, which is an all-time record. The old age of the vehicle fleet partially reflects improved durability, but also suggests that there is still some pent up demand for new automobiles. Slightly lower sales of new cars and light trucks will hurt manufacturers of original equipment. In contrast, manufacturers of replacement parts will enjoy stronger markets due to the large proportion of older cars still on the road as well as an increasing frequency and severity of accidents. Auto parts and tire manufacturers also will benefit from an expected increase in the number of miles driven. Tire manufacturers will benefit from consumers’ increased acceptance of high-performance and other specialty tires. Volatility in fuel prices will ensure that consumers embrace smaller, lighter, but more fuelefficient cars, SUVs, and light trucks. Therefore, manufacturers will focus on developing fuel-efficient models. Rising transportation costs and political pressures will encourage foreign manufacturers to invest more in US production facilities and to buy automotive parts from US manufacturers. More foreign companies now have assembly plants in neighboring states in the Southeast, fostering growth of auto parts manufacturers in Georgia. Foreign nameplate cars assembled in the U.S. will contain more domestically produced parts. The $1.2 billion KIA assembly plant employs about 2,800 workers, and the multiplier effects of those jobs within Georgia are unusually large. Each job at the Kia plant supports 4.5 jobs outside the plant. Suppliers have created jobs at sites in Georgia that are well above the estimates promised at the time of the initial KIA announcement.

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FORESTRY OUTLOOK Alexandra Hill Selig Center for Economic Growth University of Georgia

M

ore than half of Georgia’s forestland is privately owned by individuals, partnerships, or families. There are over 450,000 private forest landowners in Georgia, 75 percent of whom own fewer than 10 acres. Some of these landowners harvest timber but many of them simply preserve their land for recreational purposes or family trusts. The economic outlook for Georgia’s forestry and logging subsector is fair. Employment in forestry and logging is three times more concentrated in Georgia than in the U.S. due to the abundance of forestland across the state. Nineteen Georgia counties have a very high concentration (over 86 percent) of forestland. Many counties in southeast and central Georgia are heavily dependent on this subsector for employment. Over the past three years, employment in forestry and logging has decreased across the U.S. Georgia’s forest industry is stronger than that of the country, but also experienced employment losses. From 2014 to 2017, employment in Georgia’s forestry and logging subsector decreased by 2.6 percent. Over 85 percent of all employees in the subsector work in the logging industry. In Georgia, employment in logging grew by 3.8 percent from 2014 to 2017, whereas in the US, employment in logging decreased by 4.3 percent. Employment in US timber tract operations decreased by 18 percent from 2014 to 2017. Employment in Georgia fell twice as fast over the same period, for a loss of 34.3 percent. Late in 2017, the Trump administration imposed duties of up to 24 percent on Canadian lumber in an effort to level the playing field for U.S. lumber producers. Since tariffs have been imposed on Canadian lumber, imports of Canadian lumber to the U.S. have fallen by 15 percent over the past year. However, these tariffs have had the unintended consequence of driving up prices of sawmill timber, negatively impacting the U.S. construction market. Sizeable tariffs on Canadian lumber may have temporarily bolstered the logging industry by spiking timber prices, but the negative effects of price increases on the construction industry may cancel out any long-term benefits.

SMALL BUSINESS AND ITS IMPACT ON GEORGIA | 14


INDUSTRY SPOTLIGHT: FORESTRY Georgia Forestry Rankings

#1

Commercially Available Timberland

Annual Harvest Timber

Georgia Forestry Commission

U.S. Forest Service

Exporter of Pulp and Paper Products U.S. Bureau of Labor Statistics

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G

eorgia ranks as one of the top forestry states in the nation due to healthy forestry markets (such as paper, lumber, and sustaining life products) and public policy designed to support forestland owners.1 The booming industry accounts for 144,000 direct and indirect jobs in the state of Georgia. From 2015 to 2016, the industry saw an 8.5 percent increase in total employment (direct and indirect jobs), and in 2016, the industry provided $8.5 billion in wages and salaries, which was an 8.5 percent increase from 2015.2 In 2016, the forestry industry provided an overall annual economic impact of $35 billion and $753 million in state tax revenue.3 As of 2016, the forestry industry had a total of 560 establishments, all classified as small businesses (less than 500 employees). Of those 560 establishments, 513 had 1-19 employees (92 percent of the industry) and 47 establishments had 20-99 employees (8 percent of the industry).4 The state also ranks as the nation’s number one exporter of pulp, paper, and paperboard mill products accounting for 21 percent of all U.S. exports, as well as the top exporter of both wood fuel and wood pellets in the United States.5 Exports of wood fuel, including chips and pellets are valued at $165 million, and Georgia’s exports of wood pellets account for 26 percent of all wood pellet exports in the United States.6

Over 90 percent of the classified timberland (22.2 million acres) is privately owned – more than any other state in the nation. According to Robert Johansson, Chief Economist of the U.S. Department of Agriculture, “Georgia provides vibrant markets for wood materials, which raise the value of forestlands and encourage investment, re-growth, and expansion.”1 Overall, the forest industry output in the state of Georgia has increased 9.6 percent from 2015 to 2016, and shows no signs of slowing down.7 Sources: 1“Impact of the Forestry Community,” Georgia Forestry Association, accessed November 16, 2018. | 2“Economic Benefits of the Forest Industry in Georgia: 2016,” Georgia Forestry Commission, accessed November 16, 2018. | 3“Economic Benefits of the Forest Industry in Georgia: 2016,” Georgia Forestry Commission, accessed November 16, 2018. | 4“County Business Patterns by Employment Size Class,” U.S. Census Bureau, NAICS code: 113, 2016 County Business Patterns, published April 19, 2018, accessed November 16, 2018. | 5“Georgia: Price Movements of Top Exports and Other Highlights,” Bureau of Labor Statistics, accessed November 14, 2018. | 6“Georgia Statewide Assessment of Forest Resources,” Georgia Forestry Commission, published August 2015, accessed November 14, 2018. | 7“2013 Georgia’s Sustainable Forests: A Resource for All Generations Report,” Georgia Forestry Commission, published January 2014, accessed November 14, 2018.

$35.9 BILLION ANNUAL ECONOMIC IMPACT FROM THE FORESTRY INDUSTRY1

While the state possesses only 3.5 percent of U.S. forested land, the state’s forests are second to none in availability and sustainability. Georgia’s forests compose 9.3 percent of total forest cover in the U.S. south -- more than 24.7 million acres of forestland. Of that forestland, 24.3 million acres are classified as timberland, ranking Georgia number one in timberland in the United States.7

SMALL BUSINESS AND ITS IMPACT ON GEORGIA | 16


INDUSTRY SPOTLIGHT: WINE T

he wine industry relies heavily on consumer discretionary purchases. Income growth and increased living standards have been key to the increase of wine consumption in the United States during the past century. Over the past few decades, higher income has led consumers to eat out more often, which has resulted in an increased demand for wine purchases from restaurants. In 2018, it was expected that consumer discretionary purchases on wine would continue to increase.1 From 2013 to 2018, the wine industry in the United States has grown over 7 percent, reaching revenues of $24 billion in 2018. During the same timeframe, the number of businesses has grown by 5.4 percent and the number of employees has grown by 4.4 percent.3 In Georgia specifically, the production, distribution, sales and consumption of wine impacts many sectors of the state’s economy and generates over $4 billion in total economic activity.4 The Georgia wine industry directly employs as many as 20,275 people. When wine jobs in supplier and ancillary industries are added to the total number of jobs, the overall industry total jumps to 35,210 jobs. These jobs generate $1.4 billion in total wages via direct, indirect, and induced economic activity driven by the wine industry. The thriving wine industry also benefits local economies and tax bases by driving over 200,000 tourists and almost $90 million in annual tourism expenditures in Georgia’s

17 | SMALL BUSINESS AND ITS IMPACT ON GEORGIA

“wine country.” Georgia’s wine industry generates sizeable tax revenues on the local, state, and national levels. In 2017 alone, the industry paid over $536 million in taxes.4 Overall, most forecasts anticipate positive returns for the industry over the next few years. Exports are expected to increase at an annualized rate of 4.2 percent to $2 billion. Additionally, imports are forecast to grow at an annualized rate of 2.5 percent to $9.1 billion. However, operating profit is expected to continue declining, reaching 10.9 percent of revenue in 2023 as consolidation continues throughout the supply chain and California wineries struggle with uncharacteristically low levels of rainfall.2 Revenue is expected to increase an additional 3.8 percent in 2018 as a result of strong growth in consumer spending on alcohol.1 Over the next five years, IBISWorld forecasts revenue will increase at an annualized rate of 3.1 percent to $28.1 billion. Sources: 1 Lombardo, Christopher, “Industry Performance,” IBISWorld, NAICS code: 31213, published December 2018, accessed January 20, 2019. | 2 Lombardo, Christopher, “Products & Markets,” IBISWorld, NAICS code: 31213, published December 2018, accessed January 20, 2019. | 3 Lombardo, Christopher, “Wineries in the US,” IBISWorld, NAICS code: 31213, published December 2018, accessed January 20, 2019. | 4 “The Wine Industry Boosts the Georgia Economy by $4.1 billion in 2017,” Wine America, accessed December 10, 2018. | 5 Lombardo, Christopher, “Industry Outlook,” IBISWorld, NAICS code: 31213, published December 2018, accessed January 20, 2019.


FIGURE 6 WINE INDUSTRY IMPACT ON GEORGIA’S ECONOMY

CONSUMPTION TAXES: $125 MILLION

ANNUAL TOURISTS: 214,321 PEOPLE

BUSINESS TAXES: $536,072,300 ANNUAL TOURISM EXPENDITURES: $88 MILLION Sources: Interesting facts about Georgia’s wine industry; “The Wine Industry Boosts the Georgia Economy by $4.1 billion in 2017,” Wine America, accessed December 10, 2018.

SMALL BUSINESS AND ITS IMPACT ON GEORGIA | 18


INDUSTRY SPOTLIGHT: GOLF M

ore than 140 million Americans spend over $887 billion each year on outdoor recreation.1 Expenditures include the purchases of gear and vehicles, as well as trips and travel. It’s no surprise that the industry supports 7.6 million direct jobs and $124.5 billion in federal, state, and local tax revenue, making the United States globally recognized as the leader in outdoor recreation.1 At the core of the outdoor recreation economy is the outdoor consumer. These consumers view outdoor recreation as an essential part of their daily lives, which is evidenced in the growth of sales and jobs in this sector of the economy.2 In short, outdoor recreation is a growing and diverse economic super sector that is a vital cornerstone of successful communities, especially when the industry supports numerous small businesses nationwide. The golf industry is a sub-industry of outdoor recreation, and is a huge contributor to Georgia’s economy. With 401 golf courses across the state, golf courses and country clubs alone employ 11,309 people and contribute to $297 million in wages each year.3,4 Golf driving ranges, miniature golf, and other family fun centers employ 5,146 people and contribute $107 million in wages.5

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In return, Georgia’s overall golf industry produces $5.1 billion in direct, indirect, and induced economic output.4 All in all, nationally, 7.6 million people’s livelihoods directly depend on outdoor recreation, making it a critical economic sector in the United States.1 Sources: 1“Outdoor Recreation Economy Report,” Outdoor Industry Association, published April 25, 2017, accessed December 10, 2018. | 2 “The Outdoor Recreation Economy 2012,” Outdoor Industry Association, published February 13, 2013, accessed December 10, 2018. | 3 “County Business Patterns by Employment Size Class,” U.S. Census Bureau, NAICS code: 71391, 2016 County Business Patterns, published April 19, 2018, accessed December 7, 2018. | 4 “State by State,” We Are Golf, State: Georgia, accessed December 7, 2018. | 5 “County Business Patterns by Employment Size Class,” U.S. Census Bureau, NAICS code: 71399, 2016 County Business Patterns, published April 19, 2018, accessed December 7, 2018.

The Augusta National Golf Club is home to the annual U.S. Masters Tournament, ranked as the no. 5 course in the world by Golf Magazine.


FIGURE 7 Sources: “County Business Patterns by Employment Size Class,” U.S. Census Bureau, NAICS code: 71391, 2016 County Business Patterns, published April 19, 2018, accessed December 7, 2018.

GOLF COURSE AND COUNTRY CLUB EMPLOYMENT IN GEORGIA 0.4% 8% 43% 48%

SMALL BUSINESS AND ITS IMPACT ON GEORGIA | 20


ABOUT THE SBDC The University of Georgia Small Business Development Center (UGA SBDC) provides business training and consulting services to help small businesses grow and succeed. Working with chambers of commerce, lending institutions, and other business development organizations, the UGA SBDC educates business owners on how they can grow their businesses, as well as helps aspiring entrepreneurs improve their chances for success. Considered to be one of the nation’s top providers of small business assistance, the UGA SBDC can help in the areas of business planning, market development, access to capital, record keeping and a myriad of other topics through various educational and technical assistance activities. The UGA SBDC is a Public Service and Outreach Unit of The University of Georgia and is funded in part by the U.S. Small Business Administration (SBA). The University of Georgia Small Business Development Center is nationally accredited by the Association of SBDCs and SBA.

For more information about our organization, please visit:

www.georgiasbdc.org

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CONTRIBUTORS: Beth Melnik J. Ashley Panter Sara Bertolini Courtney Weaver Macy Thomas Emylee Connally


OUR LOCATIONS 1

ALBANY georgiasbdc.org/albany 229-420-1144

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2

ATHENS georgiasbdc.org/athens 706-542-7436

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GEORGIA STATE UNIVERSITY georgiasbdc.org/atlanta 404-413-7830

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4

AUGUSTA georgiasbdc.org/augusta 706-721-4545

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BRUNSWICK georgiasbdc.org/brunswick 912-264-7343

9

14

11

6

2

10 8

3

3 4

13 12

7

16

15 6

1 5 17

UNIVERSITY OF WEST GEORGIA georgiasbdc.org/carrollton 678-839-5082

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COLUMBUS georgiasbdc.org/columbus 706-569-2651

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DEKALB georgiasbdc.org/dekalb 770-414-3110

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GAINESVILLE georgiasbdc.org/gainesville 770-531-5681

GWINNETT georgiasbdc.org/gwinnett 678-985-6820 KENNESAW STATE UNIVERSITY georgiasbdc.org/kennesaw 470-578-6450 MACON georgiasbdc.org/macon 478-757-3609 CLAYTON STATE UNIVERSITY georgiasbdc.org/morrow 678-466-5100

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ROME georgiasbdc.org/rome 706-622-2006

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SAVANNAH georgiasbdc.org/southern 912-651-3200

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GEORGIA SOUTHERN UNIVERSITY georgiasbdc.org/southern 912-478-7232 VALDOSTA STATE UNIVERSITY georgiasbdc.org/valdosta 229-245-3738


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Small Business and Its Impact on Georgia 2019  

Entrepreneurial ventures provide hundreds of thousands of jobs in Georgia for both business owners and employees. Small businesses not only...

Small Business and Its Impact on Georgia 2019  

Entrepreneurial ventures provide hundreds of thousands of jobs in Georgia for both business owners and employees. Small businesses not only...

Profile for ugasbdc