Public Policy: Small Businesses are the Heart of Waco

by Jessica Attas, Vice President of Public Policy, Greater Waco Chamber

Small businesses are the backbone of the American economy and the heart of American communities. According to the U.S. Small Business Administration (SBA), in Texas there are 2.7 million small businesses employing 4.7 million Texans- more than 45 percent of the state’s private sector workforce. In our Congressional District, TX-17, according to the SBA’s newly released U.S. 2020 Small Business Profiles, 92 percent of businesses are small businesses and 48 percent of the workforce are small business employees. Small businesses create jobs for people who in turn spend throughout the community. As noted in the article by local famed economist Ray Perryman, every dollar spent locally has broad impacts through the economic system. With the Chamber’s membership predominantly comprised of small businesses, we are especially aware of the challenges our small businesses face, and how those challenges can be overcome. When businesses can’t open or must operate at reduced capacity, how can we still ensure dollars are spent locally, so that businesses may keep their doors open and their people employed? One answer may be in robust digital technology.

COVID-19 has had a significant impact on local businesses and forced both small and large companies to pivot and innovate. In response to the health and economic crisis, American ingenuity has been unleashed, in businesses large and small. Interestingly, digital tools and online marketplaces made possible by “big tech” have supported this adapting we’ve seen in many smaller businesses. Tech companies like Google, Apple, Zoom, Microsoft, MailChimp and Facebook have rolled out tools to offer small businesses a lifeline in an unpredictable environment- not to mention platforms to keep us all connected during these uncertain times. Free and low-cost tools like digital advertising, analytics, online marketplaces, e-commerce platforms, delivery/ordering apps, and others, have allowed our businesses to keep their doors open by providing flexibility to continue operations online. Many tech companies are offering small businesses expanded access to email and cloud storage, facilitating communication with customers through search and advertising solutions, and even offering direct cash assistance and microgrants to small businesses. While “big tech” often faces criticism, the role the industry is playing in keeping American businesses open and running, and Americans connected to one another, is critical.

Google continues to introduce tools and initiatives to serve businesses through COVID-19, and it recently announced that they are making shopping listings free for merchants. Through grants and ad credits for small and medium sized businesses, Google is working to support retailers and the e-commerce industry through the COVID-19 crisis and beyond. Similarly, Facebook has also announced $100 million in grants and ad credits for small businesses to help lessen the burden. We certainly encourage all our local businesses to pursue these and other similar opportunities.

As we all faced the challenges of the shelter-in-place orders, and continued limitations on capacity, small businesses throughout the state and community, from restaurants to retailers to service providers and beyond, were able to adapt and keep their doors open because of the federal funding supports, state policies such as shared work programs, and importantly, because of their access to critical digital tools. Technology is enabling small business to meet consumers where they are – often online (or curbside). As Texas Land Commissioner George P. Bush commented in the webinar, The Tech Forward Webcast: How Technology is Fueling the Texas Recovery, “technology can unlock opportunities for small businesses,” noting that entrepreneurs now have new strategies for reaching out to customers and clients. We have seen a shift in the business models of nearly every industry as they work to serve clients and customers. From grocery shopping to virtual gatherings and online collaboration, technology has built resilience for businesses that will likely have a lasting impact on how our economy functions post COVID-19.

Local and state governments are facing tough decisions related to budget matters, reduced sales tax revenue, and meeting the needs of citizens and business community in the future. As Comptroller Hegar noted in his July update, while Texas sales tax remittance is down, it has been offset and “buoyed by increased online shopping.” Digital technology and robust technology infrastructure can provide critical lifelines to support small businesses through these difficult times to be able to participate fully in the digital marketplace. This also bolsters sales tax revenues necessary for local services and infrastructure. Small businesses bring growth and innovation and local character to our community. Your Chamber is working to ensure policies and programs are in place for our business community to thrive. We look forward to reconvening and gathering with our members as soon as it is safe to do, and in the meantime, are grateful for access to the virtual space and technological infrastructure to continue our work and do business locally, online.