Helping Small Businesses, Downtowns, and Communities Thrive

(Representative Only)

A little funny picture.

The very same patterns of
exchange are at
work since barter & trade
to bitcoin. 

Economic development
is often about giving
pathways to motivated
people to achieve their
goals. Economic Needs

If you can 
attract such motivated people,
enhance them, 
and help them 
flourish locally
they will have a much
wider impact on 
local economies.

Economic and social
exchange are 
part of the micro
transactions that
lead to growth.

Let's continue to talk about community and economic development. As we continue exploring ways to strengthen and revitalize communities so they can compete in the global economy, research provides valuable insights into what works and why. There are many pathways to success but finding the path that is as unique as your local economy takes a little focused effort. 

Small businesses make up the vast majority of businesses in the United States, yet they are often underrepresented in economic policy discussions. This may be one reason many downtown areas have struggled over time, as economic development efforts have frequently focused on attracting large employers while giving less attention to the small businesses that form the backbone of local economies.

Successful community development requires a balance between large, medium-sized, and small businesses. Each plays a unique role in creating jobs, exchanging knowledge, adopting new technologies, and generating long-term economic value.

According to this Brookings study, many small business support programs are fragmented and difficult for entrepreneurs to navigate. The research suggests that local governments, educational institutions, nonprofit organizations, and business leaders can improve outcomes by coordinating resources and creating stronger support systems for entrepreneurs. These efforts can increase business growth, expand the local tax base, improve economies of scale for infrastructure and utilities, and make communities more attractive to residents, investors, and visitors.

From the perspective of economic cluster theory, the findings also reinforce the importance of collaboration. Whether clusters develop organically or through intentional planning, businesses that work together often achieve better outcomes than those operating independently. Collaborative business networks can increase survival rates, boost revenues, strengthen Main Streets, and improve the overall vitality of a community.

This also highlights the relationship between anchor businesses and small businesses. Large employers attract customers, workers, and investment, while small businesses provide specialized products, services, innovation, and local character. When these businesses support one another, they create a stronger and more resilient local economy. Finding the right balance between businesses of all sizes can help revitalize downtowns and position communities for long-term, sustainable growth.

Time to Level Up: How to Help America's Small Businesses Survive and Thrive in Tumultuous Times

• Small businesses account for 99.9% of U.S. businesses and employ more than 59 million people, making them essential to job creation, innovation, community development, and local economic resilience.
• The authors argue that traditional small business support programs are often fragmented and difficult to navigate, recommending coordinated local business ecosystems that provide entrepreneurs with easier access to capital, training, workforce development, affordable space, and customer networks.
• County governments can play a key leadership role by bringing together public, private, educational, and nonprofit organizations to coordinate resources and strengthen regional entrepreneurship ecosystems.
• Recent investments in infrastructure, manufacturing, energy, domestic supply chains, and artificial intelligence present new opportunities for small businesses to expand by becoming suppliers and partners within growing regional industries.
• Communities that build collaborative, data-driven support systems for entrepreneurs are experiencing stronger business survival rates, increased local revenues, more resilient Main Streets, and broader economic growth than communities relying on disconnected assistance programs.

Brookings Institution. (2026, May 26). Johnson, C. C., & Briggs, X. de S. Time to level up: How to help America's small businesses survive and thrive in tumultuous times. https://www.brookings.edu/articles/level-up-small-businesses-survive-thrive/