Small businesses are big community boost

By Andrea Koskey
Examiner Staff Writer 4/16/09

Familiar face: Kay Harris, who owns Communi-K’s Graphic Design Group, says doing business in your local community is all about building client trust Mike Koozmin/Special to The Examiner SAN MATEO – Three years ago, investment adviser Paul Roach decided to invest in himself. He took the risk and opened his own business, Roach Financial Services, in San Mateo.

Roach knew the power of having a big business behind him. He had worked for several financial powerhouses, including Merrill Lynch and Morgan Stanley.

But Roach had a desire to set out on his own, he said. A business owner was something he had always wanted to become.
Now he is self-employed, with one part-time office assistant.

“I didn’t see myself working long term for a corporation,” he said. “I tried it, but I’m fortunate enough to start my own [business].”

Roach is not alone. In 2007, 75 percent of all businesses in San Mateo — 17,198 — had 10 or fewer employees, according to the state Economic Development Department.

Many people are lured by the independence and opportunity that owning a business can offer, and municipalities also see them as beneficial cornerstones of a community.

“If you go to a small [business] that is locally owned, you know they live here,” said Linda Asbury, executive director of the San Mateo Area Chamber of Commerce. “They contribute a whole lot of services.”

On the national level, small businesses generated 60 to 80 percent of new jobs annually during the past decade, according to the Small Business Administration, which also found that such companies employ 40 percent of high-tech workers, such as scientists, engineers and computer specialists.

But despite their contributions, small-business leaders are always fighting to explain how government laws and regulations disproportionately affect them. Firms with fewer than 20 employees spend 45 percent more annually per employee than larger firms to comply with federal regulations, according to the Small Business Administration.

Additionally, where a venture is set up also determines costs that will affect its bottom line, said Scott Hauge, president of Small Business California.

It’s significantly more expensive to do business in San Francisco than in other Bay Area counties, he said.

A survey done in 2004 showed that the annual taxes in San Francisco would cost a small business about $5,400 — and that’s before controversial laws requiring sick leave and health care took effect — compared with $276 in San Jose, $612 in San Mateo and $930 in Oakland.

San Mateo County cities have launched various initiatives to attract businesses, Asbury said, noting that small efforts can sometimes be as effective as big legislation.

Asbury recalled a sign ordinance in San Mateo that was revised to be more “business-friendly.” She said a company in Redwood City relocated to San Mateo because of the ordinance.

“Something as small as a sign ordinance can certainly do a lot,” Asbury said.

Additionally, the range of small businesses on the Peninsula — restaurants, certified public accountants, floral shops, et al. — keeps the county thriving because it does not rely on one type of industry, Asbury said.

Because there are so many small-business and self-employed residents, the Chamber offers regular opportunities for owners to network and learn about other companies in the area.

Chris Eckert became his own boss as an independent agent with a San Mateo Keller Williams Realty franchise.

Eckert lives in San Mateo, and has worked hard to develop local contacts.

“When I started I was just another face,” he said. “I needed to create a level of trust, and that takes time.”

Kay Harris, owner of Communi-K’s Graphic Design Group, which creates logos, artwork, fliers, advertisements and other items, agreed that when doing business in your local community, developing connections and trust is a big challenge.

“People are being careful about how they spend their money,” she said. “It’s all about trust.”