April 16, 2001

During the Summit, the Council for Investment in the New American City released a nationwide poll of small business owners which shows strong support for government action to invest in cities' development, including housing, transportation, skills training and crime prevention. The Council, led by the U.S. Conference of Mayors, presented the poll, along with a policy agenda, to President Bush in a White House meeting with mayors and corporate representatives from across the country. (See related article in this issue.)

Conducted among 500 small business owners, the poll revealed that small business owners are optimistic about current and long-range prospects for their businesses. Sixty-three percent of respondents believe their short-term or six-month economic outlook is positive. A similar percentage believes their two-year and five-year economic outlook is positive as well. The most optimistic of small business owners are women in business, businesses in the South and service sector businesses.

The poll revealed that two thirds of small business owners feel their city is an economically stronger, safer, and more exciting place to live and do business than five years ago. The poll also showed strong support among small business owners for federal efforts to support cities' development: 74 percent said the federal government should maintain or increase funding for local skills training, and 75 percent said the federal government should continue to support cities' efforts to fight crime.

"For the first time, we've documented that small business owners support the same national priorities as the mayors," said U.S. Conference of Mayors President and Boise Mayor H. Brent Coles. "They recognize the need to re-train our national workforce to meet the needs of a changing global economy, because they understand that skilled workers are productive workers. They support making our streets safer, because they understand that a safe city is more conducive to a prosperous business environment. Two strong voices — America's mayors and the business community — are now speaking as one."

Small business owners also identified strategies that local, state and federal governments can employ to assist small business in America. 60 percent said the Federal government should play a more active role in encouraging home ownership, while 54 percent the cost of housing had gotten worse in their business neighborhood during the past five years. Also, 64 percent said they support greater investment in public transportation if it cuts down on commute times for employees.

Small business owners were asked if they would prefer development in their metropolitan areas to occur outward, in open spaces or farmland, or inward, on available land in center cities. Forty-two percent of business owners support development in the downtown areas of cities, while only 24 percent support outward development.

"This poll shows that business believes, as we believe, that cities are the new places to do business," said Conference Vice President and New Orleans Mayor Marc H. Morial. "We can, working together, really pass brownfields legislation to unleash private investment in abandoned industrial sites. We can, working with the private sector, push for a new 21st Century rails and transit system that will help shape this nation's development for decades to come. We can work together to put housing back on the national list of priorities."

"I am very encouraged by the findings of this survey," said Andrew D. Woodward, president of the Mortgage Bankers Association of America. "It proves that America's cities are coming back not only as safe and vibrant places to live, but also, as safe and viable places for businesses to do business."

"This poll is very encouraging for the increasing success of small business in our cities," said George Cloutier, CEO of American Management Services and Founder of the Partner America program. "It shows that small business owners in America are excited about their future prospects, despite concerns and recent trends in the national economy."

For a copy of the poll click here.