December 22, 2008
The number of business certificates filed with Chautauqua County took a dive in September and October as the U.S. financial sector suffered its worst crisis since the Great Depression.
Since individuals or groups must file a business certificate to conduct business under an assumed name, the drop in certificates being filed could mean the nation's economic struggles and credit shortage is deterring local entrepreneurs from going into business for themselves.
''I think this is certainly a challenging environment to run a business in and certainly to start a business in, but it shouldn't discourage folks from reaching their dreams,'' said Todd Tranum, Chautauqua County Chamber of Commerce president and chief executive officer.
According to the county clerk's office, only 56 business certificates were filed in September compared to 82 in September 2007, a 32 percent decline. In October, only 57 were filed compared to 93 in October 2007, a 38 percent decline.
Figures for November were more encouraging with only a slight reduction from last year, but 57 fewer certificates have been filed for the year so far despite a surge the first two months of 2008.
Irene Dobies, director of the Small Business Development Center at Jamestown Community College, said her own numbers do not reflect the drop in business certificates, though she said the center also works with existing businesses that already have certificates on file.
''We actually had more clients in October, and we're about the same in November,'' she said. ''There's always a lot of activity going on.''Ms. Dobies actually expects a surge in small business activity if local unemployment rates go up.
''I think anytime there's an economic downturn or with the economic conditions we're experiencing now, what actually happens is there's a higher unemployment rate, and then we do see more businesses developing because of a lack of career opportunities,'' Ms. Dobies said.
Tranum says he doesn't want to downplay the economic crisis gripping the nation, but like many, he believes Chautauqua County has been somewhat insulated from the national recession since the region has been suffering from - and adapting to - its own economic slowdown for years.
''I think cash has certainly been a little more difficult to access, there's no doubt about it, but I think to a large extent our county and region (has been) kind of insulated from some of the dramatic things that have occurred in the economy,'' Tranum said. ''Local and regional banks want to loan money. They have money to loan. There are government agencies that have resources locally. There are a lot of mechanisms ... there to help folks.''
Ms. Dobies agrees with Tranum on the credit issue, and on the fact that there are a multitude of loan funds available to entrepreneurs that haven't been significantly impacted by the credit crisis.
''We are so fortunate to have all these private loan funds like from the IDA or from the Micro Fund or from cities like Jamestown and Dunkirk,'' Ms. Dobies said. ''There are some nice alternatives.''
Source:http://post-journal.com/page/content.detai