Creating a Collaborative Small Business Ecosystem for Main Street Businesses
Research Report by Next Street
Executive Summary
Small businesses are the foundation of Columbus’ economy, representing approximately 98% of all businesses in the region and serving as critical drivers of local job creation, neighborhood vitality, and economic opportunity. Yet despite a strong economy, growing population, and diverse talent base, many entrepreneurs—particularly businesses owned by women, people of color, and those operating in underserved neighborhoods— continue to face significant barriers to growth and success.
The Columbus Small Business Agenda, developed through a collaborative effort between the City of Columbus, Next Street, community stakeholders, entrepreneur support organizations, capital providers, and local institutions, provides a roadmap for creating a more inclusive and connected small business ecosystem. The report identifies key gaps in access to resources, capital, and business support services, while outlining actionable strategies to strengthen Main Street businesses and expand economic opportunity across Columbus.
Top Line Takeaways
1. Small Businesses Are Critical to Columbus’ Economic Future
Economic Impact: Small businesses account for nearly all businesses in Columbus and play a vital role in job creation, innovation, and neighborhood development.
Untapped Opportunity: Columbus has strong economic fundamentals, but lags peer cities in small business growth and business ownership among women and entrepreneurs of color.
2. Access to Resources Remains Fragmented
Limited Awareness: Many business owners are unaware of existing programs, services, and support organizations available to help them start and grow.
Coordination Challenges: Entrepreneur support organizations and capital providers often operate independently, making it difficult for business owners to navigate the ecosystem.
3. Capital Access Continues to Be a Major Barrier
Financing Gap: The report estimates a significant small business lending gap, particularly for Main Street businesses seeking early-stage and growth capital.
Equity Challenges: Women and entrepreneurs of color face disproportionate obstacles accessing financing, networks, and contracting opportunities, limiting business growth and wealth creation.
4. Growth Support Is Missing for Established Small Businesses
Post-Launch Gap: While resources exist for starting a business, many entrepreneurs struggle to find the support needed to scale operations, expand markets, and increase revenue.
Neighborhood Disparities: Underserved communities often have fewer support organizations, less access to capital providers, and weaker connections to growth opportunities.
A Framework for Building a Stronger Small Business Ecosystem
To create a more inclusive and resilient entrepreneurial economy, Columbus identified four strategic priorities:
Expand Awareness of Resources: Increase visibility of available programs, services, and support networks so entrepreneurs can more easily access the help they need.
Build Capacity of Ecosystem Stakeholders: Strengthen collaboration and capabilities across entrepreneur support organizations, capital providers, and community partners.
Improve Services and Capital Provision: Expand access to flexible financing, capital readiness support, technical assistance, and growth-oriented business services.
Foster Connectivity Between Small Businesses and Anchor Institutions: Create stronger pathways between local small businesses and major employers, universities, hospitals, and public sector procurement opportunities.
Read the Full Report
Explore the research, findings, and strategic framework shaping the future of small business growth and economic inclusion in Columbus.