Page 206 - 1-Entrepreneurship and Local Economic Development by Norman Walzer (z-lib.org)

Understanding and Growing a Community’s Microbusiness Segment 195

these authors focus on market assessment and development, business plan-
ning, business structure, budgeting, and financial statements and control.
Two final issues faced by microbusiness owners—globalization and
e-commerce—have not yet been discussed, and both relate to each other
and often to marketing. Muske and Woods (2004) note that most own-
ers look only to expanding sales within 50 miles of their current busi-
ness location. Less than 5 percent of survey respondents reported con-
sidering international sales. Similarly, Chamberlain (2004) with NFIB
found that microbusiness owners made 90 percent of their sales within
the United States, and only 5 percent regularly marketed outside the
United States.
Globalization has a second side, namely purchasing goods and services
from international sources. Chamberlain (2004) noted that only 17 percent
of microbusiness owners had tapped the global market as suppliers, and the
percentage of their total purchases represented by international trade was
negligible.
Microbusinesses may not be as active in the global marketplace for sev-
eral reasons, starting with use of technology. Only 74 percent reported In-
ternet access, and less than one-half of the microbusinesses had Websites.
Nearly 90 percent of other small businesses had access to the Internet and
70 percent had a Website. The inactivity with respect to globalization also
comes from lack of expertise in exporting (more than half reported this sit-
uation) and with finding advisors to help (Dennis 2005). It may also be the
result of a lack of local technical expertise in the area.

TYPES AND SOURCES OF ASSISTANCE

Types of Assistance
So what type of assistance should be provided, and how, if a community
desires the development, growth, and prosperity of its microbusiness eco-
nomic segment? A note of caution must be offered regarding the self-
reporting of assistance needed. Barkley (2003) noted that businesses re-
spond strategically to surveys. What business owners report as needs do
not, at times, come through as issues in an econometric study (Walzer
2007). Yet self-reporting still provides the best insight into the needs of the
microbusiness owners. When blended with additional data provided by
individuals working and supporting this group some common issues arise.
This section offers insights into commonly requested types of assistance.
Business owners report that they need help in areas of cash flow manage-
ment, a variety of marketing needs, and personal. Government red tape and
taxes also seem high on the list of requested needs.