Author: Kirsten Barker

How Small Businesses Can Leverage AI to Build Brand Awareness

Artificial Intelligence (AI) tools can provide some cost effective support for small businesses as they leverage email campaigns, social media posts and search data to better target their customers. AI can work with existing marketing documents research to create material less time and for less cost than it would take create from scratch. Additionally, tools like Adobe Photoshop and Canva have now embedded AI image generation into their workflows, enabling non-designers to put together professional-looking graphics or layouts. To read more about how AI tools are helping level the playing field for small business, check out this recent article in CIO.

Learning from 19th Century Women Entrepreneurs

In a NPR “Marketplace” interview, Ruveyda Nur Gozen shared insights from her research on 19th-century female entrepreneurs, highlighting how she used historical data to uncover trends about women-owned businesses. Despite the challenges of limited data, her findings revealed that these pioneering women often started with less capital, focused on specific industries, and paid women higher wages, suggesting that boosting female entrepreneurship could significantly impact gender equality in today’s economy.

Understanding the “Doughnut Effect” Trend

Since the summer of 2020, America has experienced a persistent boom in new businesses, initially driven by pandemic-related factors such as online retail, warehousing, and unemployment, but now characterized by broad-based growth and a significant rise in startups, particularly tech startups focused on artificial intelligence. This trend includes a “doughnut effect,” with new businesses flourishing in the suburbs while downtown areas see less growth, contributing to a nearly 60% increase in new business creation compared to pre-pandemic levels. To hear more about these trends, check out this NPR “All Things Considered” interview.

Hurricane Preparedness For A Small Business

Hurricane Beryl hit Texas in early July, catching many businesses off guard as they usually expect major storms later in the summer. With predictions of an above-average storm season from the National Oceanic and Atmospheric Administration, small businesses need to prepare by reviewing their insurance policies, backing up data, and having an emergency communication plan.

After a hurricane, if your business is in a federally declared disaster area, aid may be available from the Small Business Administration. Details can be found at this SBA link. More information about hurricane preparedness can be found at ready.gov.

Are Small Business Owners More Content Than We Think?

Despite the stress and financial challenges, 91% of small business owners are happy according to a recent survey by Homebase. They enjoy the control and flexibility of running their own businesses, valuing the ability to make their own decisions and manage their own fate. This autonomy and sense of ownership outweigh the difficulties they face, leading to a relatively high level of satisfaction.

Navigating the Psychological Challenges of Entrepreneurship

Women entrepreneurs face unique challenges such as balancing multiple roles, battling sexism, and overcoming financial discrimination, which can intensify stress and mental health issues. To thrive, they should let go of harmful ego traits, embrace an abundance mindset, actively seek support, utilize resources tailored for women, establish healthy boundaries, and prioritize their overall well-being. Read more in this article on “How to Navigate Challenges as a Woman Entrepreneur” from Psychology Today.

Bankruptcy Filings May Become More Challenging for Small Businesses

The expiration of Subchapter V, a type of bankruptcy protection that eased the process for small businesses with less than $3 million in debt, means that small businesses will now face more complex and costly bankruptcy procedures. Initially enacted in 2020 and expanded to cover up to $7.5 million in debt during the pandemic, this provision saw higher success rates for reorganization plans but failed to become permanent, leading to a reversion of the debt limit on June 21. To read more, see this article in AP News.

Fighting First Party Fraud

America’s small businesses face unprecedented opportunities and challenges, particularly in combating a potential 40% increase in “friendly fraud” and “first-party fraud,” where customers dispute legitimate charges despite having received the goods or services. Friendly fraud involves genuine customers falsely claiming disputes on their legitimate purchases, posing a significant financial threat to merchants. To mitigate these risks while ensuring a smooth purchasing experience, businesses must balance effective fraud prevention with customer-friendly policies, emphasizing customer education, robust support, and clear communication about transactions.

To read more about this issue, see this post on PYMNTS, a site that provides data, news and insights on innovation in payments and the platforms powering the connected economy.

Some Cities Offering Discounted Rates to Fill Retail Vacancies

Empty storefront, illustration.

Cities like Seattle and Austin are repurposing vacant retail and office spaces to support small businesses and artisans by offering them at discounted rates, making it easier for them to establish a physical presence. These initiatives aim to revitalize commercial districts and increase economic opportunities for local entrepreneurs who might otherwise be unable to afford traditional long-term leases. To read more about these initiatives, see this piece in Small Business Trends.

SBA Announces Grant Funding for New Women’s Business Centers

The U.S. Small Business Administration (SBA) has announced $30 million in funding opportunities for Women’s Business Centers (WBCs), including a new center in the U.S. Virgin Islands and first-time funding for WBCs specializing in federal contracting and child care businesses. The initiative aims to expand virtual services, support socially and economically disadvantaged women, and enhance the SBA’s reach, especially in underserved communities, through an unprecedented network of 152 WBCs across the U.S. and its territories. Read more in the SBA’s press release on this initiative.