A new Postindustrial columnist, former state lawmaker, and member of the Ohio business community writes about Postindustrial America’s changing economy and the important role small businesses play in our reimagining.
Most people agree that the economy – and the way we work – is transforming. The disagreement, and sometimes confusion, starts when we ask: Transforming into what?
Much of the Midwest and Appalachia was built around big factories – steel mills, tire plants, auto plants, and tool-and-die makers. Many of those factories are gone.
So, what will replace them?
I believe small businesses will be a big part of the answer – businesses fueled by creativity and innovation and supported by dynamic economic development ecosystems.
Technology will play an important role in that future and in the way we work, particularly AI. But I believe some of its most interesting applications will come not only from large corporations, but from small businesses willing to utilize their creativity to experiment, adapt, and find new ways to put the technology to work.
I don’t say that from the sidelines. My wife, Jan-Michele, and I built our law firm from the ground up. We also co-founded a multimedia publishing company. I know what it means to make payroll, chase an unpaid invoice, and wonder whether the next contract will come through.
I’ve also seen small businesses from the policy side.
As Ohio Senate minority leader, I supported legislation for Minority Business Assistance Centers, which help minority-owned, women-owned, and veteran-owned businesses.
At the Greater Cincinnati & Northern Kentucky African American Chamber of Commerce and the Ohio Chamber of Commerce, I’ve worked with hundreds of entrepreneurs. Some soared. Some struggled. Those experiences – from owning businesses, to shaping policy, to working alongside entrepreneurs – have taught me that small business success comes down to three things: capital, creativity, and connections.
Capital is the first hurdle. Too many talented founders, particularly Black, Hispanic, and rural entrepreneurs, start with less capital and more limited access to financing.
I’ve seen promising businesses stall because they couldn’t access the capital needed to take the next step. Banks, community development financial institutions, and local governments must work together to close that gap. A $25,000 loan can mean more to a neighborhood business than a $25 million tax abatement means to a corporation.
Creativity is the second. By creativity, I mean several things: being willing to question how things have always been done, developing and embracing good ideas wherever they come from, and trying something new.
One recent example is 1872.ai, an AI welding company based in Cincinnati, which is applying AI to an established technology to create greater efficiency and save time. That’s the thinking small businesses are uniquely positioned to do: identify a challenge, rethink the conventional approach, and move quickly.
Connections are the third. Small business owners need to meet the right person at the right time and sustain the right connection.
Entrepreneurs need mentors, peers, and someone who will make the introduction. That’s why chambers of commerce, incubators and accelerators matter. Cincinnati has developed a strong ecosystem, including organizations like GCMI, Cintrifuse, StartupCincy, REDI Cincinnati, 3CDC, the Urban League, MORTAR, and our many chambers – all of which can turn a good idea into a growing company.
I’ve spent much of my career making these key connections, and I’ve seen how one introduction can open doors for a business. It can lead to a client, a mentor, a partnership, or simply someone who has already encountered the problem that business is trying to solve.
The raw materials for great small businesses are plentiful in the Midwest and Appalachia – grit, work ethic, and forthrightness. These are intangible, often unmentioned assets that drive small business success. Those qualities matter because business success often comes down to the ability to adapt, persist, and keep moving forward.
After decades of working with many different businesses, I don’t believe there’s one policy or program that will create the next generation of successful small businesses.
It takes a network of support. Policymakers can simplify licensing and procurement so small firms can compete. Anchor institutions can buy local and buy diverse. Lenders can take smart risks on proven operators. And the rest of us can do the simplest thing of all: spend our dollars with the business owners who live among us.
Simply put, small business success is community success. The factories built much of our past. Small businesses can build our future, if we give them the capital, creativity, and connections they need to succeed.
