Small Business

Sisters Erica Potts and Rita Moore never outgrew the whimsical balloon animals that are a staple of childhood parties. Instead, they became balloon sculptors, crafting towering arches and figurines for their friends' weddings and baby showers. Demand for their artwork grew throughout Gloucester County, convincing the pair that they should go into business and get their parents involved in what has become a true family affair. And so Balloon-A-Tics was formed on Valentine's Day 2000, initially running out of the family home on Sussex Avenue.

NEW YORK — Many people dream of opening their own business. But some would-be entrepreneurs are finding that state licensing requirements are so arduous that it would take years and thousands of dollars before they ever would be able to hang out a shingle. Licenses are intended to set standards in order to protect customers. But many state licensing laws can be erratic, illogical and burdensome — and stop some people from launching a small business, says the Institute for Justice, a public interest law firm.

It seems odd for the U.S. Small Business Administration to hand out awards to big businesses just because they play well with small business. But if it wasn't for the Dwight D. Eisenhower Award for Excellence, the Philadelphia area wouldn't have any winners among the national awards issued during last week's National Small Business Week. Amec Earth & Environmental Inc. , of Plymouth Meeting, received the Eisenhower award in the services category. That office is part of Amec P.L.C.

There is plenty of consensus on the benefits of keeping it small. One child is easier to handle than three. A two-door sedan is more fuel-efficient than a stretch limousine. And, of course, the gift-giving creed: Good things come in small packages. Then there's the business world. Ask small-business owners how life is and brace yourself for a litany of hardships. Topping the list might be that they don't have time to answer your question. "There are major challenges in running a small business," said Donna Marie DeCarolis, associate dean for graduate programs at Drexel University's LeBow College of Business.

If you own or have owned a small business, what advice would you give to someone just starting out? Send essays of 250 words or less by Feb. 22, including a phone number for verification, to Community Voices/Business at the addresses listed in the Where to Write box above. Questions? Call Kevin Ferris, readers' editor, at 215-854-454

Commercial lending standards have tightened in the past year for small businesses and scuttled a major portion of contracted transactions for smaller properties, the National Association of Realtors reported Thursday. "There have been notable improvements in capital for large commercial transactions valued at $2.5 million or higher, but there remain significant challenges for small business," said Realtors' chief economist Lawrence Yun. According to Real Capital Analytics, more than 13,000 major properties valued at $2.5 million or higher traded hands in 2011.

The Montgomery County Private Industry Council wants to get small business owners involved in big business. The council is sponsoring a conference Wednesday that will introduce small business owners to the opportunities to work with federal and state agencies and large private businesses. "There is so much potential out there for anybody who is interested," said Barry Reimenschneider, procurement specialist for the 6-year-old council. The Government Agency Awareness Reception is scheduled to be held at the Valley Forge Sheraton Convention Center from 8 a.m to noon.

The Friday after Thanksgiving has seen Ali Kutner practicing a sad custom in recent years. She opens her Bohema Artisan & Vintage Boutique on Ridge Avenue in Roxborough, only to experience none of the buying mania that prompted the day's designation as Black Friday - black as in profitable . "I've been here for a couple of Black Fridays now, and I might as well not be," Kutner lamented last week. "People aren't running here. " And perhaps they won't be this Black Friday, either.

The legendary Jersey Devil is a creature that has haunted inhabitants of and visitors to the Pine Barrens. Of course, the Jersey Devil is a myth, despite numerous claims of its authenticity. There is, however, a real-life devil that has hindered small-business creation, development and expansion in New Jersey the last four decades. This creature is the ever-growing burden of federal and state regulation of all types, including environmental, labor and financial regulation. Per employee, all these government mandates have a disproportionate impact on small business.

ON THURSDAY, Mayor Street will formally share with City Council his latest vision for his two-term mayoralty. The mayor will offer a partial blueprint for economic growth and will call for an Economic Development Summit to be held this spring. Economic development is a new strategic focus for this administration. But it has always been mine. As a result of my legislative initiatives, on March 25, Council's Commerce and Economic Development Committee will hold hearings to update the status of lending goals submitted by banks holding city money.

Forty-nine years ago, President John F. Kennedy signed a proclamation establishing a week to commemorate the contributions of U.S. small businesses. Every president since then has continued the tradition, known as National Small Business Week. The 2012 recognition is this week, featuring a variety of events designed to trumpet and empower a group of business owners whose total size is hard to quantify. The federal government says small businesses total more than 27 million.

NEW YORK — Many people dream of opening their own business. But some would-be entrepreneurs are finding that state licensing requirements are so arduous that it would take years and thousands of dollars before they ever would be able to hang out a shingle. Licenses are intended to set standards in order to protect customers. But many state licensing laws can be erratic, illogical and burdensome — and stop some people from launching a small business, says the Institute for Justice, a public interest law firm.

NEW YORK — Ken Levien has no plans to hire more people for his real estate project-management company in New York. He says his business has only about 85 percent of the amount of work it can handle because the building industry is still hurting from the recession. "Things are looking down in the construction business in New York City," he said. Levien has a lot of company. Many small-business owners aren't hiring or expanding because the outlook for the economy, or their own companies, is uncertain.

Commercial lending standards have tightened in the past year for small businesses and scuttled a major portion of contracted transactions for smaller properties, the National Association of Realtors reported Thursday. "There have been notable improvements in capital for large commercial transactions valued at $2.5 million or higher, but there remain significant challenges for small business," said Realtors' chief economist Lawrence Yun. According to Real Capital Analytics, more than 13,000 major properties valued at $2.5 million or higher traded hands in 2011.

Don't be misled by reports that inflation is tame. For small-business owners, it's a threat to profits and expansion plans. An 8 percent increase in the cost of eggs over the last year is eating away at restaurants and bakeries. Cotton's 14 percent increase is hurting clothing manufacturers and retailers. And any business that sends somebody on a sales trip is bearing the brunt of an 8 percent increase in jet fuel and 7 percent rise in gasoline. If this were a "normal" economy, companies could pass along the cost of doing business to customers.

Dan Mitchell has borrowed $3 million in the last year and a half to buy real estate and equipment to expand his brewery, Ithaca Beer Co. It wasn't easy. Mitchell went to at least four banks in Ithaca, N.Y., looking for a loan to buy real estate and equipment. His sales were growing 25 percent a year and the company had become profitable. His distributors wanted to buy more beer from him. But most of the loan officers just handed him applications and told him to send them in. Even a bank that had already loaned Mitchell money wasn't interested.

One glimpse of Matt McLaughlin's blue eyes and bulging biceps, and it's obvious why the 6-foot-2, 225-pound senior tight end at West Chester University considered himself a perfect fit for the job posted by College Hunks Hauling Junk . Owner Michael Ort thought so, too, making McLaughlin one of his first hires. But then he also hired Travis Weaver, who at 5-foot-8 and 125 pounds has never been likened to a hunk, the West Chester sophomore with boyish looks bravely admitted last week.

In February, 42 percent of small-business owners among the 350,000 members of the National Federation of Independent Business tried to hire one or more workers. Seventy-six percent of those hiring reported finding few or no qualified applicants for their positions. Asked why so many applicants were unqualified, owners had some surprising answers. Overall, owners said the available pool had few or no qualified workers. Getting down to specifics, 26 percent reported applicants typically lacked the required skills for the position and 23 percent had a poor work history, which made them less attractive.

The good news is that optimism among small business owners has risen for six months in a row, according to the National Federation of Independent Business (NFIB). The bad news is that it is still slightly lower than it was a year ago. Consumer optimism also slipped according to the University of Michigan. Consumer spending, 70 percent of our economy, determines how quickly the economy can rebound. I discussed the prospects for the economy and our region over breakfast recently with Joseph Wakim.

There is plenty of consensus on the benefits of keeping it small. One child is easier to handle than three. A two-door sedan is more fuel-efficient than a stretch limousine. And, of course, the gift-giving creed: Good things come in small packages. Then there's the business world. Ask small-business owners how life is and brace yourself for a litany of hardships. Topping the list might be that they don't have time to answer your question. "There are major challenges in running a small business," said Donna Marie DeCarolis, associate dean for graduate programs at Drexel University's LeBow College of Business.