Small business Archives - Page 2 of 9

Walmart holds contest for small businesses to sell products in stores or online

Walmart is looking for small business owners and entrepreneurs who would like their products sold in Walmart or Sam’s Club stores or on Walmart.com.

Walmart began accepting applications for its tenth annual Open Call event July 18, said Jason Fremstad, senior vice president of Supplier Development, Sourcing.

Fremstad said the event is part of the company’s 10-year, $350 billion commitment to strengthen U.S. manufacturing by sourcing products that are made, grown or assembled in the U.S.

Open Call will take place on Oct. 25-26, during Manufacturing Month 2023. Deadline for applications is Aug. 18.

Open Call, Walmart and Sam’s Club’s largest sourcing event, began back in 2014, when Walmart first opened its doors to more than 500 businesses to sell their U.S.-made products, Fremstad said. More than 1,100 small and medium businesses participated last year.

“Open Call presents an incredible opportunity for small and medium businesses to grow their businesses,” Fremstad said. “Entrepreneurs who earn a “golden ticket,” signifying a deal for Walmart to sell their products on its shelves or online, reach new customers, enabling them to grow. Through Open Call, Walmart has helped thousands of small and medium businesses thrive, with many expanding their U.S. manufacturing footprints and creating new manufacturing jobs in the communities they call home.”

Over the course of Walmart’s 10-year commitment to U.S. manufacturing, Open Call will have provided more than 9,000 opportunities for small and medium businesses to grow with Walmart, he said.

“Entrepreneurs who walk away with a golden ticket aren’t the only ones who enjoy Open Call opportunities,” Fremstad said. “All Open Call finalists will have access to mentoring sessions with Walmart leaders and special guests, where they can gain valuable business insights and resources. Plus, each finalist will have a one-on-one pitch meeting with Walmart and/or Sam’s Club merchants.”

To discover new Open Call entrepreneurs, Walmart is taking its U.S. manufacturing initiative on the road with the first-ever Walmart: Made Local trailer tour. The tour kicked off on July 10 in Frederick, Md., with additional stops in Philadelphia, Cleveland, Indianapolis and Chicago. Fremstad said entrepreneurs who visit the trailer can record a video to apply for Open Call 2023 and meet local Walmart suppliers who earned deals at previous Open Calls.

In addition to Open Calls, Walmart launched its Lead with Local snacks initiative earlier this year, where it sells locally made snacks prominently in stores, connecting customers to products from businesses in their hometowns, Fremstad said. More than 130 Walmart stores are participating so far.

“Investing in local, U.S.-made products isn’t just an opportunity for Walmart’s suppliers,” Fremstad said. “It also matters to Walmart’s customers.”

To apply for Open Call, visit https://engage.walmart-jump.com/open-call-2023.

High interest rates squeeze small businesses’ bottom line

The cost of doing business has increased with rising interest rates, squeezing small businesses’ bottom lines.

Amey Sgrignoli, president and CEO, Belco Community Credit Union, headquartered in Harrisburg, said small businesses are backing off from borrowing money and delaying purchases since interest rates have risen anywhere from three- to five percent for established small businesses and even more for new or at-risk entities.

“This is holding some businesses back from growing,” Sgrignoli said.

Mike Stoudt, small business partner and managing partner of RKL’s Allentown office, agreed, saying he is seeing a much longer lead time from businesses talking about capital improvements and making them.

“When interest rates were low, they could buy what they needed,” Stoudt said. “Now they are slowing down.”

Sgrignoli said small businesses she works with have also been faced with higher wages to keep or attract workers.

“With all the increased costs, businesses are having to be careful and manage their business better,” she said. “HR practices and investments are not always [business owners] primary thoughts because they are the doers. It’s just a complex environment.”

Stoudt agreed. “It’s unfortunate in this environment that companies can’t refinance, so they have to cut back in other areas like discretionary spending and staffing. The pie is only so big.”

At the same time, businesses are finding they can’t raise prices in the current climate as many raised prices during COVID due to supply chain issues and workforce shortages, Stoudt said.

“The consumer is weary now and not tolerating [price increases] so people who have done what they could with big jumps have to manage their costs,” he said.

Sgrignoli said interest rates haven’t risen this fast or this much since the 1980s. Some companies have never experienced it, she added.

“Small businesses that come to the credit union want us to chart a course to bridge the gap and get creative,” Sgrignoli said. “We start in modest ways and suggest they stay in line with the business they know, not venturing out too much.”

The fixed costs are what eats at the bottom line and Sgrignoli said it’s difficult for some businesses to keep their margins good, especially with the cost of doing business increasing.

Stoudt said when the Federal Reserve meets July 25, he thinks it will raise interest rates again.

“Inflation has been tempered so we could be at the end of the increases,” he said. “We could see things start to turn around by the end of the year.”

Sgrignoli said she thinks there is an economic slowdown, but not necessarily a recession.

“It gives me hope that a soft landing is possible,” she said.

Stoudt said one good thing for employers is that with the current climate, business owners have seen relief from some pressures like lower raise increases and supply costs.

“There has been a bit of relief in the inflation area. I think that was the point of the increased interest rates and I think it worked –ish,” he said.

Stoudt said he thinks small businesses should make sure their pricing is correct, balance interest rates with cutting back on discretionary spending for the rest of the year and defer capital purchases because that requires borrowing.

Federal government sets record on small business contract investment

The federal government is trying to make it easier for small businesses to obtain government contracts.

Small Business Administrator Isabella Guzman announced Tuesday that the Biden-Harris administration exceeded its small business contracting goal for Fiscal 2022.

The SBA released its annual Procurement Scorecard, which serves as an assessment tool to gauge the effectiveness of federal agencies in meeting their small business and socio-economic prime contracting and subcontracting goals.

The goal was to have 23% of contracts going to small businesses, but this year the administration hit a record of 26.5% of contract dollars going to small businesses.

That’s an increase of $8.7 billion over the prior year, bringing the total amount of federal money invested in small business contracts to $162.9 billion.

A total of 10 federal agencies earned an A+ score for their achievements in small business contracting.

The federal government as a whole earned an A on this year’s government-wide scorecard.

“The SBA’s Mid-Atlantic Region has the largest concentration of federal contractors in the nation, so it is vital we are geared to help small businesses find their place in delivering what government agencies need to function and serve the American people,” said SBA Mid-Atlantic Regional Administrator John Fleming who oversees the federal agency’s operations in Pennsylvania, Delaware, Maryland, Virginia, West Virginia and D.C. “Our small business advocates across the federal government and our SBA partner organizations were key in reaching these results.”

Other highlights in the report include spending on Small Disadvantaged Businesses exceeded its 11% goal for the second year in a row.

Service-disabled Veteran-owned small business spending exceeded its 3% goal, reaching 4.6%. This achievement translates to $28.1 billion in procurement, reflecting a $3 billion spending increase compared to the previous year.

Guzman said the SBA has made small business contracting a top priority and has made several strategic and targeted changes to ensure small businesses, particularly those in underserved communities, are empowered to find and take advantage of opportunities.

PA ranks No. 11 for success in minority-owned businesses, study says

Pennsylvania ranks as the 11th best state in the U.S. for the success of minority-owned businesses, according to a new study.

Lendio, a small business finance solutions provider, recently released a study titled “The Best & Worst States for Minority Entrepreneurs.” The study used the most recent data from the U.S. Census Bureau, Small Business Administration (SBA), and Economic Policy Institute from the business, lending, and economic sectors in each of the 50 states and D.C.

The data revealed that in Pennsylvania, 10.6% of businesses and 18% of startups under two years old are minority owned. From 2019-21, the number of jobs at these companies grew by 44%.

The study also showed that there are now a record 1.2 million minority-owned businesses in the U.S. Businesses owned by minorities have received a boost from the SBA’s Community Advantage loans awarded to underserved communities.

The percentage of SBA loans awarded to businesses owned by minorities has risen from 34% in 2017 to 45% in 2022. Businesses own by Native Americans grew by 68%, Pacific Islanders 28.8%, Latinos 16.5%, Blacks 13.6%, and Asians 10.2%.

The 10 best states for minority entrepreneurs are Hawaii, Maryland, Maine, Delaware, New Jersey, Florida, California, Virginia, Texas, and Idaho.

PA receives record funding from Biden Administration for internet expansion

Pennsylvania is receiving more than $1.16 billion from the Infrastructure Investment and Jobs Act to expand high-speed internet access across the state.

The $1,161,778,272 total represents the single largest federal investment in broadband internet infrastructure in Pennsylvania history.

U.S. Democratic Senators Bob Casey and John Fetterman announced the funding Monday as part of President Joe Biden’s “Internet for All” initiative. Under the Biden Administration, Pennsylvania’s total of federal funding under for high-speed internet is $1,776,854,539.

Casey sad high-speed internet is a necessity, and without it, Pennsylvanians are at a disadvantage.

“Our rural communities are particularly impacted by a lack of reliable, high-speed internet access,” Casey said in a statement. “This record-setting investment from the infrastructure law will help ensure Pennsylvania students have every opportunity to learn, families to stay connected, and small businesses to stay competitive in an increasingly digital world.”

Fetterman agreed, adding that reliable broadband internet access is almost as fundamental as electricity or running water.

“We can’t let our rural and other underserved communities get left behind due to lack of broadband access,” Fetterman said. “This funding is a big deal and will help deliver more broadband for all people, in rural and urban areas, so that everyone has equitable access to stable high-speed internet at home.”

The funding is provided by the Broadband Equity Access and Deployment (BEAD) Program, which is part of the Infrastructure Investment and Jobs Act and allocates funding directly to the states. Funding will go to the Pennsylvania Broadband Authority.

Secretary of Commerce Gina Raimondo referred to the record-setting funding as an “historic investment” to connect Pennsylvania families.

“For too long, lack of high-speed internet access has been a barrier to success for so many Pennsylvanians,” Raimondo said. “Affordable, quality, internet is no longer a luxury and residents across Pennsylvania need it to access telehealth, school, and career opportunities.”

Agriculture, forestry industry receives highest amount in business loans, study says

A new study reveals that the agriculture and forestry industry receive the highest amount in approved business loans, per employee and establishment.

Mining, quarrying, and oil/gas extraction rank second, while accommodation and food services place third according to the study conducted by Capital on Tap. A business credit card company, Capital on Tap studied the latest census data from January to December 2021 to find the industries receiving the highest amount of business loans.

Hugh Acland, director of Capital of Tap, highlighted the importance of financial support for businesses and in particular, small businesses.

“Many smaller businesses rely on different forms of financial aid: It’s not unusual for companies to draw on a mixture of small business loans, corporate credit cards, and grants in order to get their company off the ground, meet cash flow needs, or expand their operations,” Acland said in a release.

The agriculture and forestry industry heads the list with an average of $419,287 in approved loans per establishment. Together with an average of $64,520 per employee, agriculture and forestry are the primary beneficiary of small business loans, enabling them to significantly boost to the job market.

The mining, quarrying, and oil/gas extraction industry follows with $96,212 in approved loans per establishment and a total of $2,208,058,831.

The accommodation and food services industry ranks third, receiving an average approved loan amount of $51,242 per establishment for a total of $38,200,648,886. Finishing fourth is the education sector, which is averaging $42,840 per establishment, with a total of $4,741,996,532.

Completing the top five is the arts, entertainment, and recreation industry, with $42,580 in approved loans per establishment and an average of $4,207 per employee.

“Depending on the industry, the degree of financing required can vary considerably. The agricultural sector, for instance, needs significant upfront investments in land, equipment, machinery, and technology,” Acland said.

“In contrast, financial and insurance companies that drew on business loans required the lowest level of financing, as they are typically service-based consultancies with low capital requirements.”

GBDF provides loan to small woman- and minority-owned firm

A woman- and minority-owned commercial cleaning and janitorial company received a $50,000 loan for new equipment.

The Greater Reading Chamber Alliance (GRCA) said its affiliate, the Greater Berks Development Fund (GBDF), provided funding in conjunction with the Pennsylvania Catalyst Loan Fund (PCLF) to M&M Odds and Ends, LLC.

GBDF extended the loan to M&M Odds and Ends, LLC for the purchase of new equipment, and other costs associated with the award of new contracts. The PCLF will provide the matching funds that will be used to hire one full-time employee and three part-time employees.

“This loan proves that hard work, resilience and patience will pay off if you are consistent and don’t allow yourself to give up. Here at Odds and Ends we don’t count the days; we make each day count. I just want my community to know that this is all from the ground up,” Beatrice Pierre, principal of the company, said in a press release.

As a woman- and-minority-owned business founded in 2021, it has helped fill a void left by other firms because of their inability to hire staff.

“GBDF is excited to be part of the growth plans of this small company. M&M Odds and Ends, LLC is exactly the type of business that the PCLF was intended to help,” said Deb Millman, GBDF president.

PCLF was created by the Pennsylvania Statewide Small Business Credit Initiative (SSBCI). As the Certified Economic Development Organization (CEDO) for Berks County. GBDF is part of a regional collaboration in Southeastern and Central Pennsylvania that was awarded over $20 million in (SSBCI) funding.

Summit to aid small businesses from cyber attacks

To help small business owners protect information from cyber attacks, the U.S. Small Business Administration (SBA) is hosting its 2nd annual Cyber Summit during Cyber Security Awareness Month in October.

The free cybersecurity series supports America’s 33 million small businesses with tools, tips, and resources from multiple federal agencies to bolster their cybersecurity infrastructure, in addition to exploring new trends and challenges entrepreneurs are increasingly facing.

“Digital tools represent some of the most exciting revenue growth opportunities for American small businesses – from the $5.2 trillion global e-commerce marketplace to cutting-edge AI and other digital tools,” said SBA Administrator Isabella Guzman. “As small businesses increasingly rely on technology to start and grow their businesses, our SBA Cyber Summit and our work modernizing the SBA will help more entrepreneurs make the digital pivot safely by leveraging SBA resources and private sector solutions to defend their businesses, their customers, and their livelihoods from the ever-evolving threats from cyber criminals.”

According to the FBI’s Internet Crime Report, the cost of cybercrimes against the small business community reached $3.31 billion in 2022.

Small businesses are attractive targets because they have information that cybercriminals want, and they typically lack the security infrastructure of larger businesses, SBA said.

Surveys have shown that a majority of small business owners feel their businesses are vulnerable to a cyberattack. Yet many businesses cannot afford professional IT solutions, have limited time to devote to cybersecurity, or do not know where to begin. The 2nd Annual SBA Cyber Summit will address these formidable challenges with turnkey solutions.

“The rapidly evolving and interconnected world continues to present new challenges for small business owners, and it is our objective to empower them with the proper tools, said SBA Associate Administrator of the Office of Entrepreneurial Development Mark Madrid. “Through our SBA Cyber Summit, the goal is to bolster the confidence and the know-how of our resilient U.S. small businesses to deal with these cyber challenges head-on.”

Registration for the event is open to all and free. Sign up at https://bit.ly/SBACyberSummit2023.

Alburtis dog training, daycare and boarding business expands

Cold Nose Lodge is expanding its Alburtis location.

Opened in 2008, the dog training, daycare, and boarding facility at 235 W. Penn Ave. is expanding its storefront and plans to add new nutritional and enrichment items and treats, the company said.

In addition, the facility will have a dedicated training room for classes, seminars, and other dog training services, a dedicated feeding room, additional office space, and a larger grooming room.

“I am most excited about the many new opportunities to provide training opportunities for our community. We have been limited in our availability to hold classes, because we have been using the daycare rooms after hours,” said Owner Rayne Reitnauer. “We began work on the addition plans prior to the pandemic, and we are so happy to have this back on track after a long pause.”

Cold Nose Lodge has partnered with several dog rescue groups over the past fifteen years.

“We often have foster dogs who play in our daycare and sleep in our boarding suites while waiting to be matched with a family,” Reitnauer said.

Cold Nose Lodge is partnering with the Greater Lehigh Valley Chamber of Commerce to host a groundbreaking party on June 26 from noon to 1 p.m.

“One of our rescue partners, PA Caring Hearts, will be joining us at the party. Donations of dog food or money towards veterinary bills will be collected during the event,” Reitnauer said.

Allentown community to choose makeover recipient

The City of Allentown is calling on the community to choose a small business in downtown Allentown to win a branding makeover.

The City of Allentown, AlphaGraphics and City Center Allentown have launched the “Ultimate Business Branding Makeover” contest for restaurant and retail owners.

Businesses located between Walnut and Chew streets and 5th and 13th streets are eligible to compete for a branding makeover valued at $5,000. The makeover could include a redesigned logo, updated menus, loyalty cards, vinyl window signage, wall graphics, flags and more, the city said.

Contest entries are due June 30. The community will vote from July 17 to 31 and the winner will be announced in August.

Interested business owners can enter by completing a questionnaire and submitting a photo at www.allentownbusinessmakeover.com

Lehighton Family-owned business grows from van to store front

A family-owned heating, cooling and plumbing business is expanding.

After 25 years operating out of his home, Louis Accardi, owner of Home Comfort Solutions LLC, will open a shop at 325 Cypress St., Lehighton.

A ribbon cutting is planned for June 13 and a grand opening is set for June 17.

“This move is a long time coming,” said Accardi. “We have grown a lot over the last few years and it’s nice to expand out of running the business from home.”

What began as Accardi working by himself out of one van, has expanded into a family business.

“Over the years, we have added my mom and wife in the office and my son and uncle out in the field,” Accardi said. “Without the help of my family, none of this growth would have been possible.”

Located in the heart of Lehighton Borough, the new office will provide a place for customers to meet with staff and see a variety of equipment the business offers, he said.

There will also be a training facility located in the lower level, which will offer local technicians the opportunity to receive further training and instruction without having to travel out of Carbon County.

Independent sellers in Pa. sold more than 81 million products last year on Amazon

Amazon has released its Small Business Empowerment Report, detailing how independent sellers in Amazon’s U.S. store sold more than 4.1 billion products in 2022 – an average of 7,800 each minute.

More than 60% of sales in Amazon’s store are from independent sellers, most of which are small and medium-sized businesses. Those sellers averaged more than $230,000 in Amazon sales last year and exported 260 million-plus items.

Pennsylvania is home to over 14,000 independent sellers selling in Amazon’s store, according to an Amazon spokesman. They sold more than 81 million products in 2022 through Amazon, with average annual sales of $170,000.

The most-shopped categories from U.S. independent sellers in Amazon’s store, a release said, are health and personal care, home, beauty, grocery and apparel.

Selling in Amazon’s store has also enabled independent sellers to create an estimated 1.5 million jobs in the U.S.

“Small businesses are the heart of our local communities and the backbone of the U.S. economy,” said Dharmesh Mehta, vice president of Worldwide Selling Partner Services at Amazon. “Amazon invests billions of dollars annually to provide entrepreneurs with a constantly improving set of valuable tools and resources to help them gain access to capital, quickly launch in our store, build their brands, and rapidly scale and reach more customers. Amazon is committed to the success of small businesses, and we are excited to continue innovating on their behalf and help them grow into thriving success stories.”

According to the report, brand owners in the U.S. grew sales over 20% year over year in Amazon’s store.

Paula Wolf is a freelance writer

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Federal government sets record on small business contract investment

PA ranks No. 11 for success in minority-owned businesses, study says

PA receives record funding from Biden Administration for internet expansion

Agriculture, forestry industry receives highest amount in business loans, study says

Independent sellers in Pa. sold more than 81 million products last year on Amazon