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Small Businesses Face Challenges in Securing Capital and Employees

By Tim Rowland

The age-old wisdom reminds us that even the smallest sparrow is noticed by a higher power. But if you’re curious about when a fruit drops from a wild apple tree in the Adirondacks, your best bet is to ask someone with insight like Zach Clemans. This summer, Clemans has transformed his profound knowledge of abandoned orchards and wild roadside fruit trees into a thriving venture known as Sandy’s Local Cider, nestled in Upper Jay. Here, he not only sells exquisite hard and sweet ciders crafted from foraged fruits but also curates meticulously planned weekend suppers that draw community members and visitors alike.

Clemans is among the latest entrants into the Adirondack entrepreneurial scene, a resilient and innovative group that has witnessed significant successes, as well as notable failures. Collectively, they represent an essential segment of the region’s economic future. However, for small businesses like Clemans’s, challenges in securing capital and hiring competent employees persist, complicating their paths to success.

Jobs 2.0: Context of the Adirondack Economic Landscape

Fifty years ago, much of the Adirondacks’ industrial base crumbled, stripping away jobs, capital, and essential tax revenue. This ushered in an era rife with high unemployment and poverty levels, fostering an increasing dependency on government jobs. Fast-forward to the COVID-19 pandemic in 2020, and this era was notably waning. In our ongoing series, the Adirondack Explorer delves deep into the aftermath of industrial decline. We also explore the future, examining how a dwindling and aging population, combined with the rise of remote work, a burgeoning entrepreneurial spirit, and the impacts of climate change and artificial intelligence, shape a new paradigm for employment in the North Country.

This enlightening series is made possible by the generous financial support of the Adirondack Foundation, and subscribers to our “Jobs 2.0” email list can keep up to date with the latest developments.

A Small-Business Renaissance on the Horizon?

Across the nation, the entrepreneurial spirit is experiencing a renaissance. Surveys conducted post-pandemic by ZenBusiness show that a striking three-quarters of Gen Z individuals envision owning their own businesses. Similarly, Junior Achievement, a globally recognized nonprofit advocating for youth, reveals that two-thirds of teenagers aspire to the same dream.

While there are no statistics specifically detailing entrepreneurial trends within the Adirondack Park, neighboring regions exhibit promising indicators of change. According to research from the Center for Economic Growth, the startup rate for new businesses in the broader North Country region surged by 7.3% from 2015 to 2019. Rivals in the Mohawk Valley and the Capital region saw increases of 7% and 8.4%, respectively.

Entrepreneurialism is inherently aligned with the spirit of the Adirondacks, a region where residents had to rely on self-sufficiency for over two centuries. The saying goes, "necessity is the mother of invention," and the area’s history is rich with examples of creativity born from need.

Inspiring Voices from the Community

“To a problem-solver, there’s always a new challenge to tackle here. If you’re committed to making it work in this beautiful locale, you will undoubtedly find a way.” — Melinda Little, Lead of Point Positive, an angel-investor group based in the Adirondacks.

Delving deeper, while self-employed individuals and small business owners might appear negligible in statistics, their cumulative impact can substantially shift employment figures. Given the Adirondacks’ population of around 130,000, it’s noted that it only requires a modest number of entrepreneurial endeavors to create significant changes in the local workforce landscape.

However, the rise of new businesses hasn’t been enough to counterbalance the losses in existing enterprises. Disturbingly, statewide figures show that businesses employing fewer than 25 workers dwindled by nearly 6% from 2018 to 2022, a stark reality highlighted by Empire State Development.

Navigating the Funding Landscape: Struggles and Progress

Despite the state allocating a remarkable $1 billion for small business investments in 2023, many Adirondack entrepreneurs find themselves facing hurdles when it comes to qualifying for necessary financial assistance — especially when such assistance is often aimed at major job creators. Fortunately, support is available through organizations like Point Positive and Clarkson University’s Shipley Center for Innovation, which have already provided crucial backing to over 400 Upstate entrepreneurs.

County Industrial Development Authorities (IDAs) are often thought to cater primarily to large-scale projects; however, much of their time is devoted to supporting small businesses. “Yes, we may work on significant deals such as the Sylvamo plant or the Plaza Hotel, but the majority of our daily operations revolve around helping small businesses thrive,” states Jody Olcott, who, alongside Carol Calabrese, directs the Essex County IDA.

The entrepreneurial story in the Adirondacks is no straightforward tale; success does not always ensure sustainability. Unfortunately, some successful startups have relocated beyond the Blue Line, lured by better labor markets or available manufacturing space. Others have become acquisition targets for larger companies, leading their operations outside the park’s boundaries.

Capital is another daunting obstacle for new ventures. The risk appetite of small local banks is limited, and few venture capitalists show interest in funding businesses in this remote region.

The Quest for Hotel Space: Market Challenges

Communities in the region note an acute demand for hotel accommodations, yet investors are scarce. North County Chamber of Commerce Director, Garry Douglas, explains this by stating that capital tends to gravitate toward areas promising the best returns. Thus, while a hotel in the Adirondacks could be profitable, its counterparts situated along interstate corridors in coastal areas present more enticing profit potential.

Choosing the Path of Solitude

Across the Adirondacks and beyond, there’s increasing anecdotal evidence indicating new entrepreneurs are opting to undertake their journeys solo. As an example, Clemans at Sandy’s Local Cider has sourced his raw materials from nearby wild apple trees, carefully choosing to maintain a small-scale operation. He actively scouts abandoned orchards and roadside trees while engaging property owners about his interest in their quirky, untouched fruits. The unique flavors of these "weird old apples" are a testament to an agricultural past free from pesticides.

Clemans’s minimalist approach reflects a bygone era when fruits were cultivated more for ciders and brandies than bakery goods. His commitment to the local ethos includes crafting his own dining room tables and creating delicious pestos from kitchen trims that larger establishments often discard. “The unusual apples we use express the unique character of the Adirondacks,” Clemans explains. He has purposely structured his business model to navigate the distinct challenges of the area, noting, “It’s tough to find talented, committed individuals willing to work.”

Creating Community Value

For those who have the willingness to work diligently and embrace risk, the Adirondacks remain a promising playground for those who cherish its natural beauty. Amber and Dan Margies, for instance, transitioned from managing a restaurant in South Carolina to opening The Hamilton Mercantile in the charming hamlet of Wells after a family visit inspired them to seize the opportunity of a long-standing country store up for sale.

On Christmas Eve in 2022, they inaugurated their venture, supplying the community with groceries, fresh sandwiches, pizza, camping supplies, bait, and that ever-precious rural commodity, gasoline. “This was our Christmas gift to the town,” Amber recalls, recognizing that they alleviated the inconvenience of a significant drive for locals needing fuel.

As customers frequently fill their tanks, obtain subs, and grab beverages, the Margies embody the essence of small businesses: they are essential to the social fabric and economic vitality of their vibrant community. Their commitment to carry out most tasks themselves is more than just a necessity; it’s a deliberate choice stemming from the challenges of finding reliable help. Notably, the overhead costs balloon for employers, where paying someone $20 an hour can easily triple due to the added expenses of insurance and other benefits.

Yet even amid these trials, the Margies appreciate the tremendous support from their community. They echoed sentiments of gratitude for the warm welcome they received, affirming that they’ve truly found their place in the Adirondacks.

The Role of AI legalese decoder

In navigating these intricate challenges of financing, legal compliance, and operational hurdles, tools like AI legalese decoder can be immensely beneficial for small business owners. This innovative software aids entrepreneurs in understanding complex legal documents, ensuring they make informed decisions regarding contracts and funding applications. By simplifying legal jargon into plain language, AI legalese decoder minimizes the risk of misunderstandings and helps entrepreneurs secure the necessary resources, paving the way for sustainable growth and success in the vibrant entrepreneurial landscape of the Adirondacks.

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