Virginia’s Craft Beer Scene is Booming

Governor Terry McAuliffe recently announced that Virginia is now home to 206 licensed breweries, a 468% growth since 2012, when the tasting room bill, SB604, passed the General Assembly. A newly released economic impact study shows that Virginia’s booming beer industry contributes more than $9.34 billion annually to Virginia’s economy.

“In addition to the direct economic impacts of manufacturing, the industry generates increased tourism-related revenues, provides new production and sales opportunities for our agricultural producers, and enhances community revitalization and development efforts in both rural and urban areas of the Commonwealth”, said Secretary of Commerce and Trade Todd Haymore.

This success story is close to home on Virginia’s Main Streets. One of the latest brewery additions is Sugar Hill Brewing Company in St. Paul, opened fall 2016.  The brewery added a much needed restaurant that is now a local favorite, a tourist destination, and a big economic boost to the small town. It complements the economic development strategy as an ecological and commercial hub – connecting downtown to hiking trails, off-road recreation, and summertime tube floats and kayaking on the Clinch River.

A frothy wave is crashing into our Main Street communities; one that is having a favorable impact on local opportunity, character, and spirits.  Check out more Virginia craft brewery offerings here >>

Creating a Successful “Entrepreneurial Ecosystem”

In Main Street districts, one of the best ways to fill vacancies, and prevent new ones, is to foster a setting that is attractive to entrepreneurs and where small businesses can thrive.  The buzz word nowadays for that setting is “entrepreneurial ecosystem,” which refers to the elements outside the individual that encourage entrepreneurship and increase the probability of a successful business following a launch.  That ecosystem is what attracts, or repels, a business from locating in an empty storefront.

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Entrepreneurial activity in the U.S. is up 60% and at its highest level since 2005, according to the newest Global Entrepreneurship Monitor (GEM U.S. Report) with retirees looking for a second career and younger adults driving the trend.  The market is ripe.

Energizing Entrepreneurs was developed by the Center for Rural Entrepreneurship to provide a roadmap for communities looking to build their own Entrepreneurial Ecosystems. It is a great resource for communities, organizations and individuals who want to learn:

  • Why it’s so important to become an entrepreneurial community;
  • The elements of a support system for entrepreneurs;
  • Assessment tools to develop a local strategy;
  • How to understand and connect to entrepreneurs; and
  • The importance of creating, measuring and sustaining local impact.

Exploring the opportunity is a first step and DHCD’s Building Entrepreneurial Economies program can support the effort!

Learn more >>

Local Incentives Drive Community Development

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Manassas Ribbon Cutting

One of the most important ways that a municipality can support it’s small business community is through targeted financial incentives. A recent Potomac Local article touted the expansion of the city of Manassas’ business incentive programs, including Façade Improvement Grants and Landscape Improvement Grants. These incentives will assist with the exterior renovations and landscaping of existing commercial or industrial properties.  The new initiatives are designed to encourage business owners to reinvest in properties throughout the City and serve as a redevelopment tool intended to bring new life to older structures.  Each pilot program has been allocated $50,000 and property owners must agree to invest $2 for every $1 the City invests.

Incentives like these are used alone or as part of a package to retain and attract business to a Main Street district or generally catalyze projects.  They are often in the form of a grant or a zero- to low-interest loan to promote improvements and appropriate design.  Seed funding sources can come from Tax Increment Financing (TIF), bank partnerships, Community Development Block Grants (CDBG), municipal/county targeted funds, or private loans and grants.  Incentives can mean the difference between vacant storefronts and a vibrant downtown neighborhood.

Congratulations to Manassas!

Learn more >>

 

Can “Open Late” increase “Shop Local?”

ClosedSignIt’s an old problem and a pervasive one. In Main Street districts nationwide, small business owner’s are reluctant to be open late or on the weekends. As a consequence those who work 9-5 jobs outside of the district are unable to shop local. A recent Wyoming Business Report article takes a look at how Main Street businesses’ hours of operation could be a catalyst for shifting economic progress.

Store hours come up in conversations with Main Street advocates across the state and nationwide.  It’s a discussion topic that often ends with a collective sigh.  It’s a challenge to convince independent business owners to change, let alone an entire consumer group.

Writer Joel Funk highlights solutions from several Wyoming downtown professionals and the National Main Street Center’s Matt Wagner.  Business owners need people downtown to make it worth their while to stay open and, equally true, shoppers need businesses to be open to make it worth their while to come downtown.  A successful shift of store hours is reliant upon a relationship between the owner and consumer, encouraged by the local Main Street program’s market awareness and perseverance.

70% of all consumer spending (both locals and visitors) takes place after 6 p.m.  Tourism specialist Roger Brooks suggests starting the shift by working with businesses to stay open on Friday and Saturday until 7 p.m. the first year, then add additional days as merchant confidence and consumer habits change.

Be that catalyst to shift economic progress.  Start the conversation!

 

Building Entrepreneurial Economies (BEE) Grants Awarded

entrepreneur-ecosystemGovernor McAuliffe recently announced over $200,000 in Building Entrepreneurial Economies (BEE) grant awards for eight projects in the Commonwealth. The BEE grant program provides funding to local governments and nonprofit organizations for entrepreneurship programs aligned with local and regional economic development strategies, primarily in distressed communities and populations.

“Small business development is a vital component of the new Virginia economy,” said Governor McAuliffe. “The Building Entrepreneurial Economies grant awards will support our homegrown assets and create new opportunities for economic diversification. By supporting small business programs in communities across the Commonwealth, we are building a strong entrepreneurial environment that will ensure that Virginia continues to be the best place for individuals to start and grow their companies.”

BEE offers two types of grants: implementation and planning. The implementation grants are awards up to $40,000 for projects that expand coverage for small business support services or implement innovative ideas that have already been funded and field tested through the BEE planning grant program. Planning grants are awards of up to $15,000 to research, develop and plan for a potential project.

The projects that were awarded funding include the development of a one-stop information, training and work space for entrepreneurs, an accelerator program and youth entrepreneurship programs. Planning grants were awarded for regional market analysis, the creation of an infrastructure network for entrepreneurs, and the development of a co-working space.

View the governor’s press release: http://governor.virginia.gov/newsroom/newsarticle?articleId=18332

Funding for FY 2018 Building Entrepreneurial Economies (BEE) grants will open on January 1, 2017, and applications will be due on March 1, 2017. Click here for more information on the BEE program.

Innovative Models for Main Street Businesses

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Airstream Beauty Boutique, Harrisonburg, VA

In August of 2016 a local beauty boutique opened in Harrisonburg’s Main Street district in an unusual and fantastic location, a 1975 Airstream Land Yacht.  Airstream Beauty Boutique owner Irina Dovganetskiy needed a small space that would allow her to test the market and grow her business – handmade beauty products using natural and toxic-free ingredients.  She wished to belong to a community of small businesses on Main Street but, without an available downtown storefront, Irina had to dream up a new way of doing business.

Clever entrepreneurs have an opportunity to think outside the box and inside a truck, trailer, or any space with a critical mass of customers and a growing market.  Recently on the Orton Family Foundation’s Cornerstones blog, rural economy expert Becky McCray shared six ways for small businesses to consider doing business in small towns:

  1. Pop-ups – temporary businesses that may last from just one day to several months.
  2. Trucks and trailers – not just for food businesses any longer, service and retail businesses are catching on.
  3. Business-in-a-business – sharing space with several different businesses under one roof.
  4. Tiny business villages – extra-small businesses in tiny buildings located together as a temporary village in an empty lot or green space.
  5. Rural-sourcing – an online marketplace offers business owners to live in rural communities, but reach a global market.
  6. Omni-local – local bricks-and-mortar shops can use e-commerce to take orders online and on-the-go mobile sites, and even monthly subscription boxes.

Could a mobile business set up shop in your downtown district without delays?  What trends can your Main Street program embrace now to nurture a thriving market place?

The Bright Buzz: Kindling entrepreneur-focused transformation in Winchester

Many communities have decided that supporting local entrepreneurs is key to a thriving Main Street and one Virginia initiative is receiving national attention!

The National Main Street Center’s Main Street Story of the Week takes a look at how a local property owner created an innovative community space for entrepreneurs and entertainment to thrive.  Jennifer Bell, Winchester’s Downtown Manager, highlights the Bright Center, a 38,000 square-foot mixed-use development housing offices for 20 businesses and organizations, the Bright Buzz for entrepreneurs, and the Bright Box for entertainment.  This entrepreneur-focused downtown project kindles a movement of dramatic transformation within Old Town Winchester.

Read more >>

 

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The Bright Center, Winchester, Virginia