Rural small businesses struggle but survive a challenging economy – kaaltv.com

Report on Economic Pressures Affecting Small Enterprises and Sustainable Development Goals

Introduction: Local Economies and the Pursuit of SDG 8

An examination of small businesses in rural communities reveals significant economic pressures that challenge the achievement of Sustainable Development Goal 8 (Decent Work and Economic Growth). The viability of local enterprises is fundamental to fostering resilient and prosperous communities, as outlined in SDG 11 (Sustainable Cities and Communities). Recent business closures and operational struggles highlight systemic vulnerabilities that impede sustainable local economic development.

Case Studies: Challenges to Sustainable Economic Viability

Bear Paw Coffee: A Setback for Local Economic Growth

The permanent closure of Bear Paw Coffee after two years of operation serves as a direct example of the difficulties faced by small enterprises. The failure of such businesses represents a loss of local employment and economic activity, directly undermining the objectives of SDG 8. Factors contributing to the closure included:

• High product and labor costs
• Significant tax burdens
• Fluctuating and unreliable local sales

Otto’s Bakery: Navigating Supply Chain and Production Inefficiencies

Otto’s Bakery, a business with a 50-year history, illustrates the ongoing operational challenges that threaten long-term sustainability. Despite a strategic relocation to a high-traffic area to bolster its customer base, the enterprise faces persistent issues related to responsible production and supply chain management, impacting its alignment with SDG 12 (Responsible Consumption and Production). Key challenges include:

1. Supply Chain Constraints: Many suppliers impose minimum order requirements that are difficult for small businesses to meet, complicating procurement and inventory management.
2. Production and Waste Management: The difficulty in accurately forecasting daily demand can lead to excess production and food waste, a direct concern under SDG 12. The bakery attempts to mitigate this by producing a base amount supplemented by special orders.
3. Economic Dependence: The business relies heavily on a loyal customer base, underscoring the importance of community support for the survival of local enterprises, a key component of SDG 11.

Community-Led Initiatives Supporting Sustainable Development

Fostering Inclusive Markets for Micro-Entrepreneurs

In response to economic barriers, creative solutions are emerging to support micro-entrepreneurs and artisans. The Bench Handmade Workshop has organized a holiday artisan market that directly addresses obstacles hindering progress toward SDG 1 (No Poverty) and SDG 8. The initiative provides an accessible platform for local producers by eliminating the high registration fees typical of larger markets, which often render participation unfeasible for sellers with small inventories. This model promotes inclusive and sustainable economic growth by ensuring that small-scale vendors can generate profit and support their livelihoods.

Addressing Local Needs: A Link to SDG 2

The artisan market demonstrates a holistic approach to community well-being by integrating social responsibility into its operations. The initiative includes a food drive for the local Byron food pantry, creating a direct link to SDG 2 (Zero Hunger). This action highlights how local economic activities can be leveraged to address food insecurity and strengthen community resilience, reinforcing the principles of SDG 11.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth
   • The article’s central theme is the economic struggle of small and micro-enterprises, such as Bear Paw Coffee, Otto’s Bakery, and local artisans. It discusses challenges like high product and labor costs, fluctuating sales, and the difficulty of meeting supplier minimums, all of which directly impact local economic growth and the viability of decent work provided by these businesses.
2. SDG 1: No Poverty
   • The economic pressures on small business owners and artisans can lead to financial instability and poverty. The article mentions that for some vendors, participating in large markets is not “feasible” and can lead to “losing money.” Furthermore, the mention of collecting food for the “Byron food pantry” indicates that poverty and food insecurity are present issues within the community.
3. SDG 11: Sustainable Cities and Communities
   • The article focuses on the economic vitality of a small, rural community (Byron). It highlights the unique challenges faced by rural shops “without the help of a larger pool of potential customers.” The success and failure of local businesses are integral to the sustainability and resilience of the community’s economy and social fabric. The artisan market is a community-level initiative aimed at strengthening the local economy.
4. SDG 2: Zero Hunger
   • This goal is directly addressed through the mention of a community action. The artisan market is actively collecting food for the “Byron food pantry,” a direct effort to combat local hunger and food insecurity.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises.
   • The entire article revolves around the challenges faced by micro- and small-sized enterprises. The closure of Bear Paw Coffee due to “high product, labor, and tax costs” and the struggles of Otto’s Bakery highlight the need for a supportive environment for these businesses. The artisan market, which provides “local artists a chance to sell their product without having to pay huge registration fees,” is a direct example of an initiative that supports entrepreneurship and creativity on a small scale.
2. Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions.
   • The economic vulnerability described in the article, where sellers’ and buyers’ “wallets are tight,” relates to this target. The existence of a food pantry and the need for food drives imply that members of the community are living in or are at risk of poverty, and community actions are being taken to alleviate this.
3. Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning.
   • The article contrasts the challenges of a rural shop with the potential benefits of proximity to a larger center. It notes that Otto’s Bakery moved to Byron to “take advantage of the much busier Highway 14 as people drove to Rochester for work,” illustrating the economic link between a smaller rural town and a larger urban center. The struggles of these rural businesses underscore the need for planning that supports their unique economic conditions.
4. Target 2.1: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations… to safe, nutritious and sufficient food all year round.
   • The initiative where organizers of the artisan market “will be collecting food for the Byron food pantry” is a direct action aimed at achieving this target at a local level by helping to provide food access to vulnerable people in the community.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For Target 8.3:
   • Business Survival/Closure Rate: The article explicitly mentions the closure of Bear Paw Coffee after just two years, which serves as a direct indicator of the challenges facing new, small businesses.
   • Profitability of Small Enterprises: The article implies this indicator by discussing factors that erode profits, such as “high product, labor, and tax costs,” “fluctuating local sales,” and the risk of “losing money on trying to sell at a large vendor event.” The success of the artisan market could be measured by the number of vendors who are “actually making money.”
2. For Targets 1.2 and 2.1:
   • Number of People Relying on Food Assistance: The existence of and collection of food for the “Byron food pantry” implies that there is a measurable population within the community that requires food aid. An increase or decrease in the need for such services would be an indicator of progress toward poverty reduction and ending hunger.
3. For Target 11.a:
   • Economic Health of Rural Businesses: While not a formal indicator, the article’s narrative about business closures and struggles implies that the overall economic health and sustainability of businesses in this rural area could be measured. The contrast between Bear Paw’s closure and Otto’s Bakery’s 50-year history (supported by loyal customers) points to factors that could be used to assess the vitality of the local rural economy.

4. Summary Table of SDGs, Targets, and Indicators

Source: kaaltv.com