Can small businesses save us and if so, how can we help them?

When we think about small businesses, it’s easy to overlook just how much they do to keep communities strong and vibrant. These local businesses make up nearly all of the U.S. economy and employ almost half of the private workforce, creating about 62% of new jobs each year. That’s a lot of people in our neighborhoods who can find meaningful work right close to home. And it doesn’t just stop there. The money spent at small businesses tends to stay in the community—about $68 out of every $100, compared to $43 when we shop at big chains. This means that when you buy your morning coffee at the corner cafe or visit a family-owned hardware store, you’re actually helping your whole neighborhood thrive. Small businesses also add a personal touch that large companies can’t, building relationships with people, understanding their needs, and often giving back by supporting local events and charities. It’s that personal connection and commitment to the community that makes small businesses so special, weaving them into the fabric of a strong and connected neighborhood.

At EA Consultants, we’re diving deep into the world of small businesses in the United States, learning firsthand what makes these businesses tick—and what holds them back. Through our collaboration with the Financial Access Initiative (FAI) at NYU and the Aspen Institute's Economic Opportunities Program, we’re evaluating the Shared Success program, which looks at how small businesses can improve the quality of the jobs they offer. We’re also working alongside the Appalachian Community Capital (ACC) and the RADI initiative with Shining Rock Ventures to explore how small businesses in the region can become more self-reliant and resilient as they face the mounting pressures of climate change.

One thing we’ve seen so far is how essential, yet challenging, financial record-keeping is for these business owners. Without a strong grasp on their financials, it can be tough for business owners to make informed decisions about their growth and future. This is something we’re eager to explore further in our upcoming work on the U.S. Small Firm Diaries with FAI at NYU. Through this project, we’ll be collecting detailed financial data from small firms across the country to dig deeper into their financial challenges, especially around tracking and using data for decision-making. This is a journey to better understand the financial landscape for small businesses, and we’re excited to learn directly from those who are navigating it every day. As part of our overall exploration on small businesses, we will be adding some resources here to contribute to the understanding of small business value and sustainability. We begin with some reflections from my cousin, Francesco De Mojana who has a wealth of expertise in value creation and investments globally. Recently, he came to speak to students at Columbia University's School of International and Public Affairs (SIPA), where I teach. Here's a first reflection. To attract talent, businesses need to differentiate themselves. One way is to align incentives of workers with that of business owners.