Small Business Support

OFFICE  OF  ECONOMIC  DEVELOPMENT

CITY  COUNCIL  WORKSESSION

JANUARY  16,  2018

Agenda1. Berkeley’s Small Businesses By the 

Numbers

2. Findings: Issues and Trends Affecting Small Businesses

3. Existing Services for Small Businesses

4. New Programs and Policies to Support Small Businesses

5. Q & A and Discussion

Berkeley’s Small Businesses By the NumbersA  STATISTICAL  PROFILE  OF  SMALL  BUSINESSES   IN  BERKELEY

 

Berkeley’s Small Businesses by Number of Employees

1 to 570%6 to 10

12%

11 to 209%

21 to 506%

51 to 1002%

101 plus1%

◦ 5,000 small businesses in Berkeley

◦ 97% of Berkeley businesses are ‘small businesses’ (50 or less employees)

◦ Only 1% of firms employ more than 100 people

◦ Small businesses account for 41% of jobs in Berkeley

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Wages and Employment, Q4 2016

◦ 65% of firms are ‘locally owned’

◦ 37% of active businesses in Berkeley are minority and/or female owned

◦ Our city is home to over 275 startups, one‐third in software and others in biotech, clean tech and other hard tech industries

Business Diversity

Berkeley’s Small Businesses–by Industry

12%

12%

16%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Number of Employees (Firms Employing 50 or less)

Business Sectors (by NAICS Code), 2016 Q4Other Services (inc. Public Admin.)

Accommodation and Food Services

Arts, Entertainment and Recreation

Health Care

Educational Services

Management, Admin. & Support Svcs.

Professional, Scientific & Tech. Svcs.

Real Estate and Rental

Information, Finance and Insurance

Retail Trade

Wholesale Trade

Manufacturing

Construction

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Wages and Employment, Q4 2016

Ground Floor Commercial Occupancy: Declining Retail

44.8% 40.5%

11.5% 16.6%

5.9% 4.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2015 2017

Business Mix (by Square Footage)

Vacant

Arts, Entertainment & Recreation

Trade Services

Office / Other Non‐Retail

Business & Professional Services

Personal Services

Public and Nonprofit Entities

Food & Beverage Services

Retail

Source: City of Berkeley (OED)

13.5%13.0%

Sales Tax Revenue by Business Category 2010‐2017

 $‐

 $1,000,000

 $2,000,000

 $3,000,000

 $4,000,000

 $5,000,000

 $6,000,000

2010 2011 2012 2013 2014 2015 2016 2017

General Retail Food Products Transportation

Construction Business to Business Miscellaneous

Source: MuniServices, 2017 Q2

Small Business OutreachWHAT  HAVE  WE  HEARD  FROM  LOCAL  SMALL  BUSINESSES?  

How did we reach out?Surveys:◦ OED and Buy Local Berkeley small business survey (summer 2017)

◦ Reviewed responses from four other recent surveys of small businesses in Berkeley.

Interviews: 1‐1 interviews with 34 small businesses (July – December 2017)

Small Business Forum: December 6, 2017, 50+ Participants 

12/6/17 Small Business Forum

Business Challenges

Engaging with the CityPermitting and licensing processes◦ Zoning Review◦ Building Permit Review◦ Other Special Permits 

Accessing information 

Knowing “Who to Call”

Neighborhood ConditionsIllegal Street Behavior Cleanliness and physical conditionsParking and accessibility Vacant commercial spaces Impact of construction and development

Costs of Doing BusinessLabor Costs

Commercial Rent Increases 

Finding available real estate

Housing costs and availability

Competition from the Internet and Larger Stores

Berkeley’s Reputation as a Place to do Business

How do we support local businesses today?EXISTING  SERVICES  FOR  BERKELEY’S  SMALL  BUSINESSES

The mission of the Office of Economic Development is to assist businesses, entrepreneurs, artists and community organizations to access services, feel 

welcome in Berkeley, and thrive.

◦ Technical assistance and case management◦ Support for business networks and commercial district associations

◦Revolving Loan Fund◦Marketing to enhance Berkeley’s reputation as a place to do business

◦ Promote equitable and sustainable business practices, e.g. green business certification

◦ Entrepreneurship training◦ Economic data reporting and analysis

OED & Partner Services

How will we expand our support?A  PACKAGE  OF  PROGRAMS  AND  POLICIES  TO  SUPPORT  SMALL  BUSINESSES   IN  FISCAL  YEARS  2018  &  2019

Cross‐Departmental Efforts to Address Broad Issues◦Major initiatives to improve customer service◦ Transitional housing and supportive services◦Housing action plan◦City policies for encampments and street behavior◦ Parking supply and management

Can be led by OED

Existing budget and staff resources

Most Relevant

Aligned w/ CoB Strategic 

Plan

High Impact 

Near‐TermActions

Criteria

Additions & Enhancements to OED’s 2018‐19 Work Plan

2. Increase support for businesses navigating the permitting process.

4. Pilot new small business assistance and retention programs.

1. Improve OED’s outreach & communications with small businesses.

3. Recommend modifications to the zoning ordinance to support small local businesses and prioritize desired uses.

5. Increase the impact of Buy Local Berkeley.

Other Programs & Policies for Future Consideration

◦ One Stop / Small business assistance center◦ Financial support for small businesses impacted or displaced by development

◦ Vacancy tax or fee◦ Legacy business program◦ Expanding local purchasing requirements◦ Expand Revolving Loan Fund◦ Small Business Commission◦ Support for worker‐owned cooperatives

Q&A +Discussion

Office of Economic Development

Business Services Team

Jordan Klein | 510.981.7534

Tony Benado

Liz Redman Cleveland 

Eleanor Hollander

Kieron Slaughter

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