By Chris Kilgore
July 4, 2011

A panel of small business experts discussed the current state of American small businesses and best strategies to create and retain jobs in cities on June 19. All four panelists emphasized the benefits of franchises, which give entrepreneurs an opportunity to get into business without being on their own.

The panel included: International Franchise Association (IFA) Chairman and Earle Enterprises Managing Partner Jack Earle, IFA and CEO of FASTSIGNS International Board Member Catherine Monson, American Management Services, Inc. Founder and CEO and Partner America Chairman George Cloutier, and Charlotte (NC) Mayor Anthony Foxx, Chair of the Small Businesses and Franchises Task Force at the U.S. Conference of Mayors. Conference of Mayors President Burnsville (MN) Mayor Elizabeth B. Kautz moderated the discussion.

The panelists first discussed what mayors could do to create the right conditions for businesses to relocate to their cities and hire workers. Monson emphasized the benefits of clear, simple regulation and zoning. Making it easy for business owners to get necessary information is essential for courting businesses to one’s area. Cloutier and Foxx claimed that more regular small business days would help budding entrepreneurs get the advice and credit they need. Bringing local banks and entrepreneurs together through the mayor’s office could help substantially.

The conversation then turned to credit access, focusing on the IFA’s recently released “Small Business Credit Access Report.” The report estimates a $2 billion shortfall in credit for franchises this year. This worries Monson, who said that, “Credit access is the fuel that generates jobs.” In response to this serious concern, credit access has become the number one priority for the IFA this year.

Kautz then moved the discussion to the effect of the Affordable Care Act on small businesses. All four panelists showed reservations about the law, worrying that uncertainty is holding back entrepreneurs and creditors. Cloutier summed up the panel’s sentiment best by saying, “The devil is in the details.” Educating businesses on the details of the law would be helpful.

The majority of the discussion when questions were turned over to the floor revolved around balancing the interests of franchises and independent small businesses. All four panelists agreed that we shouldn’t drive out franchises simply for the sake of saving independent small businesses. Although mayors do have a substantial interest in trying to save independent businesses, they cannot afford to ignore a proven business strategy. The panel recognized concerns about spending in the community but ensured mayors that franchisees spend a substantial amount of their costs in the local community as well, especially on services for their businesses.

When asked what makes them most optimistic about the state of the American economy, the two representatives from the IFA pointed to increased access to credit and the serious conversations politicians are having about tough issues like the national debt. Foxx and Cloutier pointed to the resilience of American business owners and entrepreneurs as the most promising aspect of the American economy. At the conclusion, the representatives of the IFA and the Conference of Mayors pledged to continue to work together on future endeavors.