They may not generate billions of dollars in revenue, but small businesses are the engine that drives our economy forward. Whether they have five, 50 or 500 employees, small businesses account for the majority of new employment. According to the Small Business Administration, they have generated more than 60 percent of all new jobs in our country since 1995 and paid 44 percent of private payroll in the United States.
They are equally important in Montgomery, according to Dr. Keivan Deravi, economics professor at AUM and Dean of its College of Public Policy & Justice. “Small businesses are the foundation of our economy. They generate the bulk of job creation and income here,” he said. “Out of 150,000 jobs in the tri-county area, the top 10 biggest companies combined are only responsible for about 40,000 to 50,000 of them. The rest come from small business.”
In this way, they form the backbone of our communities. They are the places owned and run by our friends and neighbors: our restaurants, clothing stores, dry cleaners, accountants, the people and places who provide many products and services that bigger businesses need to operate. “They are complementary, really,” Deravi said.
Plus, small businesses don’t always stay that way. Most successful mega-corporations began as a small business, proving that small businesses are a crucial hub of innovation.
But the ability to survive, thrive and grow can be hindered by challenges, many that are specific to small businesses, as Deravi explained. “The amount of regulatory requirements, from permits to safety and healthcare rules, can be overwhelming for a small business, especially any business with fewer than 25 employees,” he said. “Larger businesses can afford to hire the manpower to deal with these things.” Having enough cash flow can prove difficult too. “Matching Social Security for employees is a big drain on cash flow, and that can be a hurdle,” Deravi said.
These and other issues show why government leadership that understands the value of small businesses is vital for a healthy economy. “There’s just no question about it, without small businesses our economy can’t function,” Deravi said.
TAKE ADVANTAGE OF THESE TOOLS The Chamber’s Business Resource Center connects you to the tools and resources you need to start a business or grow your business. The BRC offers one-on-one counseling and a small business resource guide, along with some specific webinars, workshops and events tailored to grow your business and help it thrive.
WOMEN WORKING TOGETHER
Getting down to business and leading change was on theagenda at the Montgomery Alumnae Chapter of Delta Sigma Theta Sorority Inc.’s first-ever Women in Business Breakfast held on February10, just one of the many small-business-benefitting events that the Chamber supports each year. More than 50 women entrepreneurs, undergraduate business students and area professionals were drawn to the event,which provided insight froma panel of the community’sleading business women, including Lisa McGinty, Executive Director Entrepreneurial Development & Acceleration at the Chamber’s Business Resource Center. Topics included Overcoming Challenges to Starting a Business, Unique Challengesto Women in the Workplace, The Critical Role of Networkingand What is Needed to Encourage Entrepreneurship Among Women.
LOVING LOCAL
These small businesses are committed to Montgomery. Consider showing them-and other locally owned small businesses-some love.
Yellowhammer Cafe
Owner: Kym Darveau
Opened: September 2016
While helping a friend manage a few of his restaurants, Kym Darveau put a few of her grandmother’s and mother’s recipes on the menus, and they got rave reviews. “Folks loved them,” she said. So when her friend closed his eateries, Darveau remembered how well her fam ily’s food had been received. “I thought maybe I should try my own place,” she said. The Prattville native served in the Air Force but ended up back in the River Region and knew it was where she ought to base her business. “I love seeing people love my food, and this is home to me, so I opened Yellowhammer Café here,” she said. “It’s also special for me to be so close to Maxwell Air Force Base. I feel a real kinship with others in the military and enjoy serving them.” Yellowhammer Café serves them, and others, classic comfort food like meat-n-three lunches and hearty break fast items like French-toast-wrapped Conecuh Sausage and other twists on traditional Southern-food favorites.
Tang's Alterations
Owner: Sieu Tang Wood
Opened: 1990s
Sieu Tang Wood first came to Montgomery in 1985 after starting her alterations businesses in Alaska in 1975. A contract to do alterations with Gunter Air Force Base that soon expanded to include contracts with other area military bases brought her to the River Region, but in the 1990s, she shut down her military business and opened her first Tang’s Alterations shop to serve the public. She now has four locations of Tang’s in Montgomery and one in Prattville. Wood has stepped back a bit, retaining ownership of her stores but letting her employees manage and make most of the decisions, although she is always paying close attention. “I want to ensure the quality of the brand I worked hard to create,” she said. And she stressed why she chose to build that brand here. “I’ve been to so many places, beautiful places, like California, Alaska, Hawaii, but when I first came to Montgomery, I knew I wanted to stay here and do business here,” she said. “I like the small, comfortable, friendly feeling here and the wonderful support I’ve gotten from my customers here. I can travel to all those other places, but here is where I want to live and work.”
Little Red Cupcake
Owners: Fred & Nita Johnson
Opened: September 2014
When co-owner of Little Red Cupcake Nita Jonson s brother-inlaw was traveling for work, he tried a cupcake at a big-city bakery that was doing lots of business. He was less than impressed. “He told Nita her cupcakes were way better and that she should open a shop,” said Nita s husband Fred. “That’s how it started.” The Montgomery natives were high-school sweethearts and came back home after Fred retired from the military. He told her if she wanted to have a shop, he would help. She did and he did, and they dubbed their place Little Red Cupcake in honor of Nita s red velvet cake that Fred and many others loved. Today, the business is mostly a family affair with Nita s mother and the couple s two nieces on the payroll. They all get a kick out of watching people eat Nita s sweet treats. “They take a bite and their eyes roll back in their heads,” Fred said. “We love that look; we love giving joy through cupcakes.
Untethered Drone Works
Owner: Lee Drumheller
Opened: January 2017
When licensed pilot and plane salesman Lee Drumheller saw an opportunity to turn a hobby into a business, he didn’t hesitate, opening Untethered Drone Works only a few months ago. “I got into flying drones for fun but then saw the chance to use them to provide a service not many are offering here,” he said. The company offers aerial photography and videography captured using a drone aircraft. “We are cost effective, and can do things that other aerial photography can’t, since a drone can get closer and hover, and it is less limited by weather,” he said. Plus, the company’s DJI Phantom 4 drone is capable of shooting high-resolution 4k still images as well as 4k video. Customers range from companies looking to add something new to their advertising efforts and wedding photographers ready to give their clients something special to commercial developers in need of mapping and pre-site surveys for construction projects. Drumheller stressed why his pilot background is crucial. “Safety is important,” he said. “That’s where my knowledge and experience give me an advantage.” While advances in technology have made his business possible, he knows old adages still matter. “It’s a new idea using new technology, but great customer service is still key.”
“Montgomery small businesses are the heartbeat of our community. 90% of Chamber members are small businesses with less than 100 employees. In addition, these small businesses are major supporters of our local schools and non-profit organizations. The Chamber works continuously to support the needs of our small business community by creating programs and initiatives designed to foster business growth and development, which ultimately creates jobs for our citizens.”
- Temisha Mitchell Young, Director, Diversity and Inclusion, Montgomery Area Chamber of Commerce
