Opinion: Midwesterners fare well at National Small Business Week

The model changes the most common rural economic development strategy used in the last 20 years – providing tax incentives to industries to relocate and bring jobs to communities – to one of providing an entrepreneurial pathway in which small-business and startup owners already living in the community can expand to create more jobs.

It is true that the latter model requires a caring community of small business leaders and lenders willing to think and innovate.

They best know a community, its needs and most importantly, its potential.

I just returned from National Small Business Week 2006 in Washington, D.C., where the best small businesses in the nation were honored. I call your attention to Leroy and Barbara Shatto, selected as the SBA National Small Business Persons of the Year Runner-Up for their work at Shatto Farms Inc., now doing business as Shatto Milk Co. The Shattos broke out of the milking “business as usual” mentality to create organic bottled milk marketed across the Kansas City metropolitan area.

The Shattos not only saved the farm their family established in the 1800s; they continue to create jobs for their community, and teach school children the concept of “cow to grocery shelf” milk production.

The Shattos set out to find a way to be profitable. They searched the avenues and found a pathway– good counseling and marketing help from a free, expert resource – SBA’s own Kansas City Score – Counselors to America’s Small Business.

With a willing lender and SBA-backed loans, they built their future. Since 1993, a niche market loyal to their products supports the business to the great satisfaction of the community of Osborn, which has 20 new jobs.

Similarly in Nebraska, SBA’s National Exporter of the Year John Miller transformed his hay farm in 1993 into a producer of small herbivore pet food products. Today, Oxbow Pet Product’s Critical Care syringe-fed diet product sets the standard for the world for the care of convalescent guinea pigs, hamsters and such. Oxbow exports more than $1 million in products to more than 20 countries. Its employees now include members of the Miller’s community as well as family.

With 43 full-time workers and a payroll topping $1.2 million, the company thrives near Murdock, home to barely 200 working adults. Its founder energetically teaches other Nebraskans how to export. The Nebraska Small Business Development Center helped steer Miller to the needed resources.

How much taxpayer-funded abatement would it have taken to create similar employment numbers in these communities?

Both owners credit various government agencies for help with their chances to do more.

As our country competes globally, Midwesterners have advantages: good educational foundations, a history of toughness, access to technology and common sense. These tools, interspersed with innovation, build sustainable communities.

As you consider your future and the futures of those around you, I hope you will use our resources to find your pathway.

Sam Jones is the Region VII SBA Administrator.