The U.S. economy has been a mixed bag of late – gross domestic product grew in the second quarter at an annualized rate of 3.8% but a sense of uncertainty relating to inflation and tariffs have led to a softening of the job market.
Even so, University of Tennessee at Chattanooga economist Howard Wall says the local economy doesn’t necessarily march in lockstep with the national economy.
“The local market is pretty solid, given the national uncertainties,” says Wall, director of UTC’s Center for Economic Research. “The fundamentals are pretty solid locally. It’s more daunting for manufacturing, but tourism and restaurants – leisure generally – is still pretty strong.”
Winston Brooks, director of Economic Development and Entrepreneurship for the City of Chattanooga, says that one thing a small business owner should do, regardless of the economic climate, is establish relationships with “key partners and stakeholders.”
“Early on,” he says, “before you find yourself in any type of crisis situation. Attorneys, bankers, the (Small Business Administration), which has great access to capital.”
Brooks says the MLK Small Business Collaborative, which is due for what he called a “soft launch” next month, will serve as a sort of “concierge” service for individuals looking to launch a small business.
“Anyone interested will be taken through the bureaucracy,” he says. “Our vision is to be a best-practice model in supporting entrepreneurs.”
There’s no substitute for getting solid advice and counsel on the front end, advises the Chattanooga Chamber’s Darian Scott.
“Do the research,” says Scott, the Chamber’s Economic Inclusion director. One mistake many fledgling entrepreneurs make, he says, is that they believe they can ride a particular skill to a successful business.
“You have a skill set – frying fish. Cutting hair. Whatever it is,” he says. “And people have told you for years that you ought to start a business.
“You might not realize it until something dramatic happens, and now you’re looking for help. You have to fill these forms out. Somebody needs your last two years of tax returns and articles of documentation from the state.”
“If you haven’t been through a program like ours,” he says, “you might not be able to do that.”
The economy could be up, down or sideways, but Marcherie Savage’s advice to entrepreneurs probably wouldn’t change.
“There is always a place for opportunity,” says Savage, entrepreneurial development director at the Chattanooga Area Chamber of Commerce INCubator. “If you have a great product or service that solves a problem or meets a need, your business will do well.”
Chattanooga offers a robust ecosystem of support from groups like the Urban League, the Tennessee Small Business Development Council, CO.LAB and many others.
“So many great partners ready, willing and able to provide (support) for little or no cost,” she says. “All people have to do is take advantage.”
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