How to Encourage Entrepreneurship in Your Town

…nine different ideas for promoting entrepreneurship, within both government and the private sector.

A strong town needs strong local businesses. Local businesses provide jobs and opportunities for wealth creation. They can become a draw, encouraging visitors from outside your community, as well as a way for community members to support each other by buying local. Only with a thriving locally-based economy—one that isn’t owned or propped up by someone six states away—can we succeed in creating sustainable jobs and lasting economic prosperity.

Entrepreneurship is a hot word these days. Lots of towns say they would like to attract more entrepreneurs and grow their small business communities. But how do you do it? There are many ways to encourage entrepreneurship in your community, both through government leadership and private sector/neighborhood-level work.

THE GOVERNMENT’S ROLE IN ENCOURAGING ENTREPRENEURSHIP

1. Adjust zoning codes to reduce business costs.

Do your zoning codes allow for mixed-use buildings where a shop owner runs her business on the first floor and lives upstairs? Are there minimum parking requirements for new businesses? Are food trucks permitted in your community? These are good questions to ask if you want to encourage small business growth. Buying or renting and renovating a building for a new business can be extremely costly. If your community allows for creative use of space, diverse income streams and smaller options than the typical stand-alone store, you lower the barriers to entry for small business owners.

2. Help facilitate walkable business districts.

Walkability is a huge factor in small business success and can create fertile soil for entrepreneurship to thrive. In a concentrated, walkable neighborhood with shops and restaurants, passersby are far more likely to frequent multiple businesses than if they were just driving to a specific store in an auto-oriented area.