News

Small businesses thrive in tough economic climate

By Kaitlynn Perreault

Posted on Sept. 24, 2009, at 1:21 a.m.

Usually it is easy to spot a couple of guys after work at a bar ordering one of many common beers — Budweiser, Coors, Heineken, Shipyard. At Tim Gallon’s Black Bear Brewery, the beer selection is more unique — he brews it himself. This personal aspect of his beer is just one of the reasons his small brewing business remains strong in the economic recession.

“I think the niche of being small and seeing myself, the owner, with rubber boots on shoveling grain, it puts a realistic identity behind the product you’re buying,” Gallon said.

Gallon started the Black Bear Brewery five years ago, but was not brewing with his own equipment and facility in downtown Orono until a year and a half ago. He took his love for brewing and made it a small production microbrewery for local sales because he felt it was something the town needed.

“I think right now the way the economy is, it’s easier to look at your small local community because as a whole people are looking more toward those types of businesses to support each other,” Gallon said. “Downtown has a great environment for that.”

With hardships in the current economy, it may seem bizarre that a new business would be successful. According to job placement consulting agency Challenger Gray & Christmas, about one in 10 people looking for jobs found employment by starting their own business during the second quarter of 2009. The rate has doubled since 2008.

Abe Furth, with co-owners wife Heather Furth and friend Mark Horton, have started their own business and will soon be opening another.

The Furths and Horton have been running Woodman’s Bar and Grill in Orono for five years. The Small Business Administration’s Office of Advocacy has found that even in nonrecessionary periods, about half of the new businesses launched will fail in their first five years. Abe Furth said Woodman’s is still strong.

“We’ve never feared failure,” he said. “The businesses that are a real part of their community tend to ride out these hard times based on the fact that people want to see them succeed. I definitely feel comfortable as a small-business owner that our businesses are healthy.”

Abe and Heather Furth will soon be opening another small Orono business called Verve. The shop will specialize in burritos, coffee, smoothies and pastries — all at what Furth says will be affordable prices. Furth believes this is another reason why his business will do well.

While business for the Furths, Horton and Gallon seems to be steady and strong, R.L. Sinclair & Sons, a stove shop, opened two months ago in Orono. Owner, Sally Sinclair said it has been a slow start, but business is picking up.

“My husband has been planning it for two years and we just opened two months ago, so we’re just starting to pick up,” she said.

Sinclair likes to embrace the local aspect of their business, but said with their business the customers will get better quality than they would in a larger chain selling the same products.

“With us the customer has service after the sale, compared to the big chain sales where they [the customer] get what they get and that’s it.” Sinclair said. “I’ve seen a lot of Orono people come in and say they would rather purchase from us because we are a neighborhood store, rather than purchasing from a big chain.”

While Sinclair, the Furths and Gallon acknowledge that the larger chains may help the economy, Abe Furth believes the smaller businesses will be what gives the economy the change, or at least beginning of the change, that it needs.

“I think, in America, that small businesses are definitely key toward building towns and creating, not just economical health but also just health as a community in general,” Abe Furth said. “Getting out and having a place to go helps out the town, instead of just having people sit inside all day.”

There are no solid statistics to prove small, local businesses will clear a tough economy. However, the SBA’s Office of Advocacy showed 64 percent of new jobs over the past 15 years have come from these small businesses.

Abe Furth cites examples of Margarita’s and Pat’s Pizza and knows that small businesses like these can grow, allowing more jobs and bigger opportunities.

“You can go from a small business to a bigger business,” Furth said. “It’s inspiring to look to those people who started at a younger age.”

The Furths, Sinclair and Gallon are all active in supporting other local Maine businesses. The Furths even sell Gallon’s beer at Woodman’s. While the economy may be rough, at the end of the day they are all just out to keep the local economy going strong and avoid business failure.

Gallon makes light of the recession by jokingly summing it up in one simple sentence:

“It does scare me, but I hear they say that beer is recession proof.”

This entry was posted on Thursday, September 24th, 2009, 1:21 am. You can follow any responses to this article through the RSS feed.