Local entrepreneurs discuss business challenges at Eastern

Two dozen local small business owners discussed their economic challenges during a roundtable discussion at Eastern Connecticut State University on Oct. 13.  

Sponsored by the CT Department of Economic and Community Development (CTDECD) and the Connecticut Small Business Development Center (SBDC), the event featured a lively discussion with business owners from a variety of northeastern Connecticut businesses. 

“We take our role in the economic vitality of eastern Connecticut very seriously,” said Eastern President Karim Ismaili in his introduction. “One of the goals of our new Strategic Compass is to invigorate the University’s relationship with the town and region. Supporting local businesses is a big component of that.” 

Ismaili highlighted Eastern’s new Small Business Resource Center (SBRC) and the Eastern Passport program, which encourages students to explore Willimantic businesses, as two examples of this renewed commitment to the local economy.  

Speaking to the resource centers and businesses at the roundtable event, Niti Pandey, dean of the School of Education and Professional Studies, said, “It is collaboration between community organizations like ours that will enable a powerful ecosystem of support for our small businesses and entrepreneurs.” 

Small businesses speak up  

Sheila Hummel, director of small business for the DECD, began the discussion. “We want to hear directly from you … the front lines of business. What’s working well? What can the state do to better support you?” 

A common theme among the business owners was criticism of state mandates and the high cost to do business in Connecticut. They pointed to requirements such as providing health insurance for full-time employees and restrictions on using gas-powered landscaping equipment, for example, as unwelcome mandates that hurt small businesses.  

Jeff Nodden of Manchester Awning and Canvas focused on the rising cost of payroll, materials, taxes, and insurance. If he grows his business, he said, “my income goes down. … It’s scary. Running a business is no joke.”     

On Connecticut’s minimum wage — among the highest in the country at $16.94 — Michelle Nicholson of the Flour Girl Bakery said Connecticut has essentially cut an entry-level wage for high school workers.   

An economics/finance lecturer at Eastern, Nicholson said Connecticut’s high minimum wage deters small businesses from hiring, resulting in less opportunity for teenagers and a less prepared future workforce.  

Jason Hyland of Project IMO Inc., a leadership and career development nonprofit in Willimantic, advocated for separate mandates for small businesses and mega corporations, saying larger businesses can afford higher starting wages.  

The business owners also called for better outreach for resources and early business education in schools.  

“We should be learning how to [run a business] in high school,” said Matt Cote of Alpine Elevator Inc., an Eastford-based elevator service. “It took me 20 years [after high school] to figure it out.”  

“I’m afraid to scale up,” said Mary Pharmer of Pie on the Hill, a bakery in Scotland. She cited taxes and other “hidden things” that complicate running a business. “It’s scary … the state should make it [easier] and more common knowledge.”   

Jennifer Davis of Bark Society mentioned unofficial “off the record” businesses as one of her biggest challenges. She says her brick-and-mortar dog grooming business in Danielson is much more expensive to run than her competitors who offer the same service out of their house.  

RK Mamillapalli of Spice Town, an Indian grocery store in Vernon, said marketing and standing out from larger companies are his biggest challenges.  

Offering support 

Steven Semaya of the CT Small Business Development Center encouraged the businesses to take advantage of funding opportunities such as the Connecticut Small Business Boost Fund for low-interest loans. Loans are provided up to $500,000 to eligible businesses and nonprofits with no origination fee and a fixed 4.5% interest rate. 

President Ismaili also stressed that Eastern’s SBRC is available to local businesses for education/support. The roundtable event happened to coincide with the start of the SBRC’s second Small Business Academy, a free, month-long business education and coaching program open to local entrepreneurs and taught by Eastern faculty.   

For staffing needs, Ismaili encouraged the businesses to inquire with the University about taking on student interns, who can provide a variety of services in the realms of marketing, human resources, technical support, and more.  

Speaking to his peer business owners and consumers at large, Matt Cote from Alpine Elevator stressed the importance of supporting small businesses over the often more convenient alternatives like Amazon.  

“We need to save ourselves and think twice about how we spend our money.”