Small businesses are the backbone of local economies. Their success lends itself to stronger communities by creating new jobs, driving local economic growth and offering residents more options and opportunities. We continue to see small business growth opportunities in the Twin Cities metro, from a booming tech hub in St. Paul to favorable infrastructure, economy, and quality of life for businesses in Minnesota, which have led to a number 6th ranking among the best states for business. The Twin Cities continue to see growth particularly in the tech space, as several startups headquartered here are among the fastest-growing private companies in the U.S., according to the 2024 Inc. 5000 list.
Identifying how to best support small businesses in reaching their full potential can empower more people to achieve their goals and prosper in their communities. It’s critical to address the multiple needs of entrepreneurs and help create an ecosystem of support for local small businesses. This can be done through:
1. Streamlining access to credit. Small businesses come in all shapes and sizes, and so do their capital needs. What’s more, we know that small business owners who live and work in communities of color face disproportionate barriers to accessing critical capital. We offer a continuum of capital options — as well as the guidance to choose among them at every stage of growth.
2. Investing in your business through talent and operations. Investing now in operations processes could pay off in the long run, such as using digital tools to simplify and automate processes like invoicing, approvals and payments. You can move money faster with real-time payments, which can improve your cash flow while minimizing the risk of fraud. Additionally, while many small businesses are solo operations, adding team members to manage the workload can help make your business run more smoothly. If you already have an accountant or bookkeeper, build from there and add other employees who have the industry expertise to help put your business on the path for lasting success. In the twin cities, we are committed to connecting local small businesses with JPMorganChase resources, serving as the bridge between the business community and our bank. By providing support and guidance, we help small business owners prepare to access capital, fostering an environment to sustainable growth and success.
3. Connecting small businesses to a suite of experts. Entrepreneurs are natural problem-solvers, but sometimes outside help is needed to bolster a business. That’s why we invest in free business consulting services for everything from developing a business plan to thinking through growth opportunities to solving operational challenges. JPMorganChase offers a complimentary one-on-one Coaching for Impact program that will be expanding and in 38 cities by the end of this year, featuring Certified Small Business Consultants to mentor and coach small business owners so they can better run their business. As of the end of 2023, the program has helped over 5,000 businesses grow.
When small businesses thrive, they are more likely to reinvest revenue growth in their neighborhoods, resulting in higher income growth and lower poverty rates. In Minneapolis and St. Paul, I’ve observed how local entrepreneurs are not only driving economic development but also fostering a sense of community and resilience. Thriving small businesses often lead to job creation that is accessible to residents, particularly in underserved areas. This not only helps with reducing unemployment but also encourages local spending. Additionally, successful small business contribute to the development of community infrastructure and services, further enhancing the quality of life for all residents.
Not only are there positive economic returns, but individuals and families benefit from the creation of generational wealth. This cycle of investment uplifts individual entrepreneurs and strengthens the broader community paving the way for sustainable growth and improved opportunities for future generations.
Looking ahead, we know there is no single solution to helping small businesses expand their business footprint. In order to drive sustainable progress, we need stronger collaboration tied among public, private and nonprofit organizations to identify actionable solutions that help small businesses thrive for years to come. Through the coaching for impact program we are committed to supporting small businesses across the twin cities, helping to build a vibrant local economy rooted in resilience and opportunity. By fostering partnerships with nonprofit organizations to deliver educational resources we aim to create a thriving ecosystem that empowers local entrepreneurs, strengthens neighborhoods, and sustains growth for years to come.
Read the original article from Minneapolis / St. Paul Business Journal.