Microbusinesses Increase In Tight Job Market
DENVER (CBS4)- As the job market stays tight, many people are turning into entrepreneurs. Those who are having trouble finding a job are starting their own small businesses to fill a niche and to try to fill their pockets.
Colorado ranks fourth in the nation for the number of sole-proprietor businesses with more than 414,000 registered in the state.
Jacob Venter came up with his business plan while jogging his dog. He found that the best way to exercise his energetic border collie was to jog her a couple a times a day. He thought other people probably faced the same problem, and Denver Dog Joggers was born. Venter quit his job to start his microbusiness.
"This is much more rewarding. I love working outside, I love working with dogs, and it's just a really, really good feeling working for myself," Venter told CBS4.
Venter jogs 15 to 20 miles a day to meet the needs of his clients, and he just hired his first contract jogger.
"I've been meeting or exceeding my growth projections, so that's pretty exciting," Venter added.
Microbusinesses are made up of less than 5 employees and they are popping up everywhere.
"They are very common. Seventy-five percent of small businesses nationally, as well as in Colorado, are sole-proprietor," said Tameka Montgomery, Executive Director of the Denver Metro Small Business Development Center.
Many Americans are looking for ways to make some money and relying on their own resources to do it. Richard Blake owns a 1965 Samba Microbus 21 window deluxe which he's turned into the Hippie Limo. Blake started renting out the bus to make ends meet after he lost his job. But to make his business successful he's had to master so much more.
"I rebuilt this thing, I work on it, I market it. I'm definitely a full-on microbusiness person now," Blake told CBS4.
Experts say that most microbusinesses are service oriented.
"Those are often the easiest businesses for a person who's recently been laid off or seeking new opportunities are able to transition into," Montgomery said.
Lip balm was the start of Sweets Cosmetics. Katie Barstow and Molly Dunkle are entrepreneurs right out of college.
"We could easily have found secure jobs. And I had a secure job that I quit, so it was really like 'What am I doing right now?' But it was worth it ... we're happy," Barstow said.
Sweet Lips is their signature product born in Dunkle's parents' basement. She started making lip balm as a hobby when she was 12. Now it has turned into a full-fledged business they hope will be on everybody's lips.
"(Our) future plans? Get into as many nationwide stores as possible and grow our online business," Dunkle said.
Being a small business owner is a challenge. There is a high failure rate among these enterprises. Montgomery suggests getting help from someone who has reached their dream.
"Starting a business you're going to make mistakes, right? But by seeking out assistance, it allows you to not make those unnecessary mistakes," Montgomery said.
Here's a list of organizations that offer help to small business owners:
- Denver Metro Small Business Development Center
- Rocky Mountain MicroFinance Institute
- Rocky Mountain Minority Supplier Development Council
- ACCION New Mexico/Arizona/Colorado
Montgomery sees great potential in microbusinesses. If a fraction of them succeed and grow, they could add some much needed jobs to the Colorado economy.
- Written for the Web by CBS4 Special Projects Producer Libby Smith
