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"THE FINE PRINT"

The musings of Michael Schrader

SMALL BUSINESSES THE BACKBONE TO A STRONG COMMUNITY
(Written in 1994; previously unpublished. Posted in toto with Preface and Epilogue 13 July 2001)

PREFACE -- At the time this column was written, the City of Farmington was in the process of giving Huffy Corporation millions of dollars in incentives to open a plant in Farmington. As the Press-Leader was a proponent of this action, it was not surprising that they refused to publish this column.
      As a small businessman, I found it frustrating (and still do) to be completely ignored by local government. Whether or not my business succeeds or fails is irrelevant to local government. Yet, we lament the loss of “Main Street”, a vibrant hub of small family owned businesses, and the loss of a sense of community and civic pride. However, there is little effort made to patronize and support small businesses. Either our community leaders do not recognize or fail to acknowledge the correlation between healthy small businesses and a healthy community.

       A recent article in a national publication rated the top cities for establishing a small business. Four of these cities are in the state of Missouri. However, despite the claims of local officials that St. Francois County is a great place to start a business, none of the cities of St. Francois County are on the list.    In fact, no city in southeast Missouri is on the list. Perhaps we were excluded because we are too small to have been included in the study. Perhaps. Perhaps we were excluded because we are not small -business friendly.
       Unfortunately, despite what is publicly professed by the powers that be, our county is inhospitable to small businesses. First of all, a double standard exists in how businesses are treated by our local officials. For large companies, like Huffy, the city is willing to provide millions of dollars in incentives. On the other hand, small businesses are provided with nothing. "It's sink or swim, boys. You just can't generate the publicity."
       For what has been invested in one Huffy, countless small businesses could be helped. Unfortunately, it just isn't as glamorous to assist small businesses than big business. Small businesses do not get the media coverage that big businesses do.
       In their haste for immediate publicity, our government officials have shortchanged our future. After all, small businesses are the backbone of the economy. Big business needs small business to survive. (After all, who would repair the office equipment? There are not many, if any, Xerox repair businesses employing hundreds of people.) Furthermore, small businesses are potential big businesses. In 1939, McDonnell Aircraft was a small aircraft parts business. Fifty years later, the company was the largest defense contractor in the world and employed 40,000 Missourians. Thus, a small business now could become a McDonnell Douglas in fifty years. Which business? Only time will tell, but wouldn't it be foolhardy to let a future multinational conglomerate relocate out of the area because they are too small now?
       In addition to this double-standard is a lack of support of local business by local officials. Although I could not be considered a union lackey by any stretch of the imagination, I must admit I do agree with the union about the use of a Tennessee contractor at the Huffy plant, although for a different reason. There are a number of excellent contractors (both union and non-union) in eastern Missouri. Why, then, wasn't one of these firms hired? Why is Missouri tax money going to an out-of state firm? Is this really conducive to a healthy business environment? With this action, the city of Farmington has insulted local businesses and local residents, as it is an implication that the residents of this area are not intelligent enough to construct a building, and thus it is necessary to import "professionals."
       Farmington is not alone in importing "professionals." The tragedy of the situation is that these professionals do not live here, nor do they have a vested interest in what happens here. Their main interest is money, and when that is gone, they will be too. Conversely, the local businesses have staked their livelihood in this area, but all they are receiving is the cold shoulder. Ultimately, we will lose our small businesses, either to relocation or failure. When the small businesses leave, the big businesses will follow, and our community will fall into the abyss of economic ruin.
       Thus, we as a community must make the ultimate decision: sacrifice the glamour to build a foundation for the future, or sacrifice the future for a few moments of fame?

EPILOGUE -- This column turned out to be quite prophetic. Farmington gave away the store to lure Huffy who stayed a mere five years before closing shop and moving on to greener pastures. Farmington lost millions of dollars in tax revenue, several hundred people lost their jobs, and all that remains as a testament to Huffy’s time in St. Francois County is a vacant building. In short, back to square one. If only that money had been invested in small businesses with a tie to the community.