2002

Microbusiness – A Sustainable Option for West Virginia’s Economic Legacy

By Pam Curry, Executive Director, Center for Economic Options

 

There is an Iroquois belief that in our deliberations we should consider the impact of our decisions on the next seven generations. Give some thought to what West Virginia would be like if sustainable economic development choices were made seven generations ago…

 

Our state’s economic history, largely built on extractive and manufacturing activity, has made us dependent on wage-based jobs. These “old” industries are no longer the powerful economic engines they once were. West Virginia is lagging behind the nation in terms of personal income and economic vitality even while the national economy is booming.

 

The time is at hand for West Virginians to regain the entrepreneurial culture of their ancestors and create a sustainable economic legacy for future generations.

 

The value of a diversified economy and having control of one’s economic destiny cannot be over-emphasized. In order for people in West Virginia’s communities to prosper, they must not be totally dependent on a single industry or employer and they must cultivate a high degree of economic self-reliance.

 

Equally important is the long-term impact of an economic activity on the community’s natural and human resources. In order for economic activity to truly prosper, it must be sustainable - able to meet the needs of the present without compromising the ability of future generations to meet their own needs.

 

Business ownership is one of the fastest growing segments of the national economy. Reflecting this trend, traditional small business is alive and expanding in our state. Perhaps most exciting is the fact that West Virginia has a rapidly growing entrepreneurial option that helps people and communities build wealth, retain assets, create jobs, energize local economies and control their economic destinies. This option is microbusiness development.

 

Through microbusinesses – small-scale, usually home-based, businesses with five or fewer employees – West Virginians can (and do) earn a living while remaining in, and, contributing to their communities.

 

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Microbusiness” does not mean “microprofit.” Many microbusinesses do operate on a small supplemental scale, but many are incredibly profitable.

 

Often, people operate a microbusiness while also working for an employer. Instead of viewing this part-time business activity as a “mere hobby,” it is seen as an “insurance policy” against life disruption when/if the wage-based job disappears.

 

Starting and operating a microbusiness: helps people create and retain jobs that build on their strengths; increases social capital by tightening ties to local communities; and enables them to affect positive change in other aspects of their lives.

 

Microbusinesses enable people to stay in and help build their communities, an important value for many West Virginians who share the Appalachian values of strong family ties and a “sense of place.”

 

People who operate microbusinesses tend to be knowledgeable and aware of the immediate and future impact of their business activities. They are closely connected to their enterprises and understand the importance of conserving resources. Also, because they operate their businesses “at home,” they are interested in helping to improve – not exploit - the community’s quality of life.

 

Initial economic research indicates that 10 percent of the West Virginia workforce, more than 73,000 people, are engaged in businesses that employee five or fewer people. These figures only include registered businesses so 10 percent is most likely just the tip of the iceberg.

 

There are numerous extended families involved in microbusiness. For example, one entrepreneur who lives in a rural county of our state has a flourishing herb and flower business and her spouse operates a stonework business; together they also provide landscaping services. Three relatives nearby - an artisan, a commercial artist, and a woodworker – often collaborate with them on marketing and production opportunities.

 

These microbusiness activities are significant sources of household income for this family. In fact, it is rare to find a family where no one is engaged in some form of entrepreneurship. Many people operate a variety of microbusinesses throughout the year. In many ways, it is an important part of our state’s culture and heritage.

 

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By providing training, access to high-end markets, and exposure within the community, the Center for Economic Options is able to help rural entrepreneurs develop their skills and grow their businesses to the level they want.

 

This is an important message for young people too. If we can engage youth in entrepreneurialism, perhaps they will consider staying in their communities and starting their own businesses instead of believing their only option is to leave the state to find work.

 

With the growing success and potential of microbusiness development, particularly in rural communities, discussions about West Virginia’s emerging “new economy” are gradually shifting from, “how can we get jobs” to “how to create our own sustainable jobs.” This will be no less than a cultural paradigm shift and will mark the turning point in West Virginia’s economic challenge.

 

Sustainable development is a choice, and one embraced by many microbusiness owners. Let us broaden the discussion to include all economic development decisions. You’ll have a chance to do that on Sept. 21 from 8-11 p.m. when West Virginia Public Broadcasting presents the most inclusive public policy discussion on the economy to date. Ten sites throughout West Virginia will be connected for a live, interactive exchange of ideas surrounding the question of what economic legacy we will leave our children and their families.

 

“Building Our Economy: Coal and Beyond” is the first program in the Legacy series and will be simulcast on all West Virginia public television and radio stations. There is also a website for more information and an on-line survey.

 

A lot has been “taken away” from our state and it is time for us to define, retain and build our own sustainable wealth. You can help! A great first step would be participating in the process.

 

Pam Curry is Executive Director of the Center for Economic Options, 345-1298. The website is www.centerforeconoptions.org.

More information about West Virginia Public Broadcasting’s Legacy series can be found at www.wvpubcast.org/legacy.

 

 

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