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NewsJune 25, 1992

Economic development authorities say there are few opportunities for communities to land large firms that will employ hundreds of people. So in Cape Girardeau, efforts are being made to nurture new small businesses. A Vision 2000 survey taken of new businesses in 1990 found that many novice businessmen complained they weren't prepared for the many city zoning, licensing and construction regulations...

Economic development authorities say there are few opportunities for communities to land large firms that will employ hundreds of people. So in Cape Girardeau, efforts are being made to nurture new small businesses.

A Vision 2000 survey taken of new businesses in 1990 found that many novice businessmen complained they weren't prepared for the many city zoning, licensing and construction regulations.

Based on the survey's results, local economic development representatives compiled a "new business welcome packet," which now is available at City Hall. The packet is aimed at helping entrepreneurs and others get started in business in Cape Girardeau.

"It's actually the brain child of Vision 2000's economic development and business committee," said Buz Sutherland, director of the Cape Girardeau Small Business Development Center.

The center, along with Vision 2000 and the city administration worked to compile the packet, which includes information on inspections, building codes, license applications, tax registration forms, and other useful information.

Sutherland said he thinks the packet address most of the concerns expressed by new business owners in the 1990 survey.

"It's pretty early to try to gauge the impact, but I think it has been well received," he said. "A need was brought to our attention and we've tried to address that."

Sutherland said the city now sends his office the names of new businesses issued licenses each month so that he can follow up to make certain they understand what resources are available to the business.

"A great many of the larger organizations or businesses have their own systems for finding suitable locations to relocate in," he said. "A lot of times they'll have their own staff people dedicated only to that task.

"But the small businessman has to wear all those hats and frankly needs some assistance and guidance."

Sutherland said new businesses are burdened with many regulations and licensing requirements. He said the "welcome" packet reveals the city's "philosophy of cooperation" in trying to help businessmen understand what's needed.

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"It helps small businesses. It also helps convey a feeling of helpfulness," he said. "A lot of small businesses don't feel that. One of the major thrusts of this was to create a positive environment for new businesses in Cape Girardeau."

The packets also include useful information on how to contact local resources that will provide support and counsel for businesses.

Sutherland said he hopes the packets ultimately help more new businesses survive in Cape Girardeau. Nationally, about 80 percent of all new ventures fail in the first year.

Fortunately, Cape Girardeau's rate is much lower, Sutherland said.

"A great many of those, the basic reason they fail is poor planning on the front end," he added. "Cape has an excellent track record. One of the reasons is it has a good regionally based economy."

Sutherland said more and more cities are beginning to realize the importance of fostering new, small businesses in lieu of large factories or corporations.

"There are now 19,000 economic development groups nationwide," he said. "For the most part, new plants and plant relocations amount to about 300 a year. Those aren't very good odds."

Although Sutherland said the city won't abandon "smokestack chasing," it's just as important to attract and nurture entrepreneurs and small businessmen.

"I think it's important to foster the growth of new businesses that are smaller and can expand in the future," he said. "I refer to it as a `grow your own' philosophy.

"If you provide a nurturing, fertile environment, you don't have to look very hard to find some home grown businesses that prove to be pretty successful."

Sutherland said he hopes the new business welcome pack will serve as a tool to encourage new businesses and help to allay apprehension about city regulations and restrictions.

"I think tools like that show the philosophy that the city wants to work with these people," he said. "If I was a small business, it would make me feel a lot better to have something handed to me that will show me what I need to do."

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