SMALL BUSINESS AND ITS IMPACT ON GEORGIA
Small Business and Its Impact on Georgia, 1
TABLE OF CONTENTS Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Small Business Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Georgia Economic Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Importance of Agriculture in Georgia . . . . . . . . . . . . . . 7 Georgia Business Rankings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Georgia Small Business Employment by Industry . . 10 Business Demographic Profile . . . . . . . . . . . . . . . . . . . . . . 12 Film & Entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Microbreweries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 International Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 About the UGA SBDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Celebrating 40 Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Small Business and Its Impact on Georgia, 2
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CHARTS & TABLES 2014 Total Farm Gate Value (Chart 1) . . . . . . . . . . . . . . . . . . . 7 2014 National Agricultural Commodity Rankings for Georgia (Chart 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Georgia Business Employment (Chart 3) . . . . . . . . . . . . . . 10 Georgia Small Firms by Industry (Table 1) . . . . . . . . . . 11 Changes in Georgia Business Ownership (Table 2) . . . . . 12 Business Demographic Overview (Table 3) . . . . . . . . . . . . 12 Top Filming Locations in the World (Table 4) . . . . . . . . 14 Farm Type (Chart 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Georgia Agriculture Quick Facts (Table 5) . . . . . . . . . . . . . . 15 Craft Brewer Characteristics (Table 6) . . . . . . . . . . . . . . . . . 16 Georgia Exporting (Table 7) . . . . . . . . . . . . . . . . . . . . . . . . 17
Small Business and Its Impact on Georgia, 3
INTRODUCTION
E
ntrepreneurial ventures provide hundreds of thousands of jobs in Georgia for both business owners and employees. Small businesses not only supply principal income for families, but they meet unique needs for part-time employment, temporary employment, supplementary income, or, particularly for many young people, that first job opportunity. Small firms and their distinctive offerings provide custom products and services that are otherwise unavailable, are a convenience for residents and visitors to our state, and help make our communities vibrant. The innovation and creativity that entrepreneurs provide the marketplace appear in all types of businesses – manufacturing, construction, wholesale, retail, and service. Whether high tech or personal services, these engines of economic growth are found in every city, downtown area, suburb, and industrial park. While the economic environment in Georgia and the rest of the United States continues to offer challenges for small business owners, Georgia entrepreneurs keep finding ways to survive and thrive. Sales for many businesses are slow, which can hinder job creation. Credit remains tight for businesses that need financing, either to sustain payroll or those who have opportunities to expand. Although the status of the economy has meant cut backs or closure for many businesses, new opportunities have also appeared. Georgia remains a high business creation state, as it has long been. The University of Georgia Small Business Development Center (SBDC) is a resource available to help entrepreneurs. As an educational extension program of the University of Georgia, the U.S. Small Business Administration and our partnering institutions (Georgia State, Kennesaw State, Clayton State, Valdosta State, and Georgia Southern Universities, and the University of West Georgia), the SBDC provides management training and one-on-one assistance to small business owners and prospective entrepreneurs. Over the past five years, individuals who have sought assistance from the SBDC have created over 1,600 businesses, created over 12,000 jobs, raised more than $670 million in loan and equity financing and generated more than $10 billion in sales. According to the latest impact study, firms that have sought SBDC assistance experienced job growth of 15.5 percent versus the typical Georgia firm which increased employment by only 2.9 percent. Small businesses play a critical role in the economic development of Georgia. The information within this publication is provided to help illuminate the vast contributions made by Georgia’s entrepreneurs.
Small Business and Its Impact on Georgia, 4
SMALL BUSINESS
OVERVIEW 41.1%
982,112
Small Businesses1
increase in minority
ownership1
97.7 %
FOURTH
OF ALL GEORGIA EMPLOYERS1
165,852
Small Businesses with Employees1
88.8%
Ranked for best environment for small business and entrepreneurs.2
1.5 Million
OF STATE’S EXPORTERS
1
Small Business Employees1
Source: 1 “Small Business Profile - Georgia.” U.S. Small Business Administration, Office of Advocacy, 2016. Web. 2 Entrepreneur & Small Business Quick Facts (April 2016). Georgia Department of Economic Development.
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Small Business and Its Impact on Georgia, 5
GEORGIA ECONOMIC OVERVIEW
$474,696 Million Georgia’s Gross Domestic Product1
14,242
Establishment Births In First Two Quarters of 20152
$58.9 Billion
Total Economic Impact for Tourism in Georgia3
Registered Business Establishments4
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644,743 New (Net) Jobs in 20135
+38,868
Source: 1Gross Domestic Product (GDP) by State (millions of Current Dollars). Regional Data, GDP & Personal Income. Bureau of Economic Analysis, U.S. Department of Commerce, 10 Dec. 2015. Web. 6 June 2016. | 2 “Business Employment Dynamics Data by States.” Business Employment Dynamics. Bureau of Labor Statistics, U.S. Department of Labor, n.d. Web. 14 June 2016. | 3 “Tourism.” Industries in Georgia. Georgia Department of Economic Development. Web. 3 June 2016. | 4 “Georgia Is the Place to Be for Small Businesses.” AtlantaFranchiseExperts.com. FranNet of Atlanta, 18 May 2016. Web. 14 June 2016. | 5 “Small Business Profile - Georgia.” U.S. Small Business Administration, Office of Advocacy, 2016. Web.
Small Business and Its Impact on Georgia, 6
IMPORTANCE OF AGRICULTURE IN GEORGIA Dr. Kent Wolf, UGA’s College of Agricultural and Environmental Science
T
he business of Agriculture has long been an important part of Georgia’s economy and will continue to be a driving force at the local, state, and national level. Georgia has the unique attribute of being home to a diverse array of food and fiber production and a rich assortment of the related economic sectors that make the entire system work. Together, these directly and indirectly related industries account for over $74.3 billion dollars in output contribution to Georgia’s $907.7 billion economy. This economic role also includes over 411,500 jobs for 2014.
CHART 1
Georgia is host to over 42,000 farms encompassing more than 9 million acres spread throughout the state. Though sometimes overlooked as part of Georgia’s thriving small business community, 88 percent of these farms are considered to be small businesses in terms of annual sales (2012 Agricultural Census, USDA). The Bureau of Economic Analysis reports nearly 35,000 farm proprietors, consisting of both sole proprietors and noncorporate partners as owners. These facts demonstrate that the robust Agriculture and related sectors not only contribute to our state and national and world-wide prominence, but comprise a critical part of the small business sector as well. On a local level, the economic contribution of these food and fiber industries – including landscape services – ranges from a few million to a few billion dollars of county output and often boasts thousands of jobs for the local agriculture and related sectors. The UGA College of Agricultural and Environmental Sciences Center for Agribusiness and Economic
Development (CAED) gathers data annually on these production values in the Farm Gate Value Report. CAED economists conduct further analysis to calculate the total economic contribution of all the sectors involved in this production from seeds and fertilizer to processing for the range of different commodities, including row and forage crops, vegetables, fruits and nuts, ornamental horticulture, forestry, livestock, aquaculture, poultry and eggs, and agritourism.
Small Business and Its Impact on Georgia, 7
This food and fiber production earns Georgia top ranking in the nation in many sectors, including number one in blueberry production, broilers, peanuts, pecans, rye, and onions. Georgia ranks second in the nation for cotton, cucumbers, pullets and watermelon; third for bell peppers, peaches, and sweet corn. Changing consumer eating patterns open many opportunities for these agribusiness entrepreneurs as consumers are looking for new, interesting, and innovative food products. The growing diversity in Georgia and the nation has created opportunities for agribusinesses that supply food products. For instance, the number of ethnic markets outside of Atlanta alone carry numerous products that are not currently grown in Georgia. In addition to agricultural production, growing ethnic populations provide opportunities for value-added products and processing of agricultural commodities. The Georgia Department of Agriculture is implementing the 2020 Vision for School Nutrition in which they are striving to get at least 20 percent of school meals comprised of Georgia-sourced products by the start of the 2020 school year. Further, 20 percent of schools will be challenged to reach 50 percent of their menu content sourced from Georgia. This will create opportunities for producers across the state. Larger farms may not be geared toward a program like this or they may be constricted contractually, unable to take advantage of these types of initiatives. There is continued interest and demand for local foods across the state and nation, playing out in national retail chains as well as restaurants and institutions. These prospects exist and are cultivating new markets for the agribusinesses entrepreneur – not only in providing raw commodities but in value-added products.
Small Business and Its Impact on Georgia, 8
The world population is continuing to grow. It is estimated that there will be an additional 2.4 billion people on the planet in 2050. To meet the needs of this growing population, Georgia farmers will have to produce more products. At the same time, these growing markets will demand different type of food products that can be grown here in Georgia. As emerging economies become more affluent, they are increasing their demand for protein products. Therefore, the growing world population will continue to provide opportunities for farmers across the state.
GEORGIA BUSINESS RANKINGS 1stst
Business Climate1
Doing Business2
Largest Average of SBA Loans3
Alpharetta Best US City for Women Entrepreneurs4
Atlanta Best city in US for millennials5 Infrastructure
3rdrd
6
Workforce6 Access to Capital6
Overall6
Growth in Number of SBA Loans3
9th
nd 2nd
5thth
Regularity Environment7 Most Entrepreneurial State3
Business Friendliness6 Best States for Business
7
11 11
th
Source: 1 Arend, Mark. “Peach State Three-peat.” Site Selection Magazine. N.p., Nov. 2015. Web. 10 June 2016. | 2 Crawford, Mark. “Georgia Once Again Leads the 2015 Top States for Doing Business.” Area Development. N.p., 2015. Web. 10 June 2016. | 3 Todd, Jonathan. “Most Entrepreneurial States: Where Small-Business Loans Rule and Startups Abound.” NerdWallet. N.p., 13 Oct. 2015. Web. 10 June 2016. | 4 Southerland, Paul. “2015’s Best Cities for Women Entrepreneurs.” GoodCall. N.p., 12 Aug. 2015. Web. 10 June 2016. | 5 Poppick, Susie. “Best Cities for Millennials.” Money. Time.com, 25 Sept. 2015. Web. 10 June 2016. | 6 “America’s Top States for Business 2015.” CNBC.com. N.p., June 2015. Web. 13 June 2016. | 7 “Best States For Business.” Forbes.com. Ed. Kurt Badenhausen. N.p., 21 Oct. 2015. Web. 13 June 2016.
Small Business and Its Impact on Georgia, 9
GEORGIA SMALL BUSINESS
EMPLOYMENT BY INDUSTRY
T
he Small Business Profile published by the SBA Office of Advocacy shows that there are 982,112 small businesses in the state of Georgia. With a total of 1.5 million employees, 44 percent of all employees in Georgia are employed by small firms.1 The SBA Profile also shows that 165,852 small firm establishments in Georgia have employees.1 Small firms are defined as having less than 500 employees.
The 2016 Georgia Economic Outlook from The Terry College of Business at the University of Georgia projects that Georgia’s economy will continue to grow, however, the job growth will slow considerably. The fastest job growth will occur in construction, then professional and business services, followed by mining and logging. Other sectors expecting above-average gains are: education, health services, and leisure and hospitality.2 CHART 3
GEORGIA BUSINESS EMPLOYMENT 500+ EMPLOYEES
20-99 EMPLOYEES
100-499 EMPLOYEES
1-19 EMPLOYEES
Source: 1 “Small Business Profile - Georgia.” U.S. Small Business Administration, Office of Advocacy, 2016. Web.
165,852 Small Firm
Establishments with Employees1
982,112 Small Businesses in Georgia1
Small Business and Its Impact on Georgia, 10
44% -or1.5 MIL
of Georgia’s Private Sector Workforce is Employed By Small Businesses1
TABLE 1
GEORGIA SMALL FIRMS BY INDUSTRY, 2013 SMALL FIRMS
TOTAL FIRMS
SMALL FIRM % OF INDUSTRY
ACCOMMODATION AND FOOD SERVICES
223,030
385,392
57.9%
HEALTH CARE AND SOCIAL ASSISTANCE
204,510
457,707
44.7%
PROF., SCIENTIFIC, AND TECH SERVICES
139,305
230,143
60.5%
RETAIL TRADE
136,905
440,474
31.1%
OTHER SERVICES (EXCEPT PUBLIC ADMIN.)
128,475
154,956
82.9%
MANUFACTURING
118,220
340,638
34.7%
CONSTRUCTION
117,220
143,503
81.7%
ADMIN., SUPPORT, AND WASTE MGMT.
103,917
326,206
31.9%
WHOLESALE TRADE
101,250
194,332
52.1%
FINANCE AND INSURANCE
53,252
163,566
32.6%
EDUCATIONAL SERVICES
40,991
81,003
50.6%
TRANSPORTATION AND WAREHOUSING
40,575
164,898
24.6%
REAL ESTATE AND RENTAL AND LEASING
36,172
56,405
64.1%
ARTS, ENTERTAINMENT, AND RECREATION
27,881
43,360
64.3%
INFORMATION
23,855
127,080
18.8%
AGRI., FORESTRY, FISHING AND HUNTING
7,443
7,708
96.6%
UTILITIES
6,272
24,184
25.9%
MINING, QUARRYING, OIL/GAS EXTRACTION
2,401
4,822
49.8%
1,511,674
3,346,377
45.2%
EMPLOYMENT
INDUSTRY
TOTAL
Source: 1 “Small Business Profile - Georgia.” U.S. Small Business Administration, Office of Advocacy, 2016. Web.
The report also noted that Georgia’s private sector restructuring is complete and the risk of another recession is low. The primary risk factors that may lead to a new recession are mistakes in fiscal and/or monetary policies, unexpected slowdown in China, extreme shift in asset prices, or a widespread financial panic.2 Currently, several large companies are seeing Georgia in a favorable light as evidenced by the new plants and headquarters in the state. Legislation changes
and Georgia’s geographical location have brought new industries to the state that will have a positive impact.2 Small business owners are benefiting from Georgia’s increasing home prices that are up 36 percent from mid-2015. Entrepreneurs tend to use their homes as collateral to start or expand their businesses. With the recent increase in home prices rising, home equity will be more available for financing entrepreneurship.2
Source: 1 “Small Business Profile - Georgia.” U.S. Small Business Administration, Office of Advocacy, 2016. Web. | 2 Humphreys, Jeffrey M. The 2016 Georgia Economic Outlook. Publication. Comp. Beata D. Kochut, Stephen F. Kuzniak, and Mary Evans. Ed. Lorena M. Akioka. Athens, GA: U of Georgia, Terry College of Business, Selig Center for Economic Growth, 2016. Print.
Small Business and Its Impact on Georgia, 11
BUSINESS
TABLE 2
CHANGES IN GEORGIA BUSINESS OWNERSHIP FROM 2007 & 2012
DEMOGRAPHIC PROFILE
NON-MINORITY MINORITY NATIVE AMERICAN/ALASKAN
T
HAWAIIAN/PACIFIC ISLANDER
he state of Georgia’s business friendly environment is attracting minority entrepreneurs to open businesses. According to the Georgia Department of Economic Development, Georgia ranks number 2 in the nation for highest number of black owned businesses at 20.4 percent.1 NerdWallet recently analyzed 111 U.S. cities with 100,000+ populations. They analyzed cost of living, percentage of black owned businesses, and the median income of black residents. Georgia has three of the top 10 cities: Columbus, Atlanta, and Savannah. Columbus comfortably took the number one spot with over a third of the city’s small businesses being blackowned.2 Since 1997, the number of businesses owned by black women grew 322 percent, making black women the fastest growing group of entrepreneurs in the U.S. Georgia is one of three states with the highest concentrations of black woman-owned businesses.3 Hispanic entrepreneurs have also driven the nation’s small business world forward. The number of Hispanic entrepreneurs grew from 577,000 to 2.0 million between 1990 and 2012. In just that 12 years alone,
ASIAN AFRICAN AMERICAN HISPANIC -40%
-20%
0.0%
20%
40%
60%
80%
The change in overall firm ownership for each demographic group from 2007 to 2012 based on the Survey of Business Owners (SBO) for Georgia, released in December 2015. Source: 6“Small Business Profile - Georgia.” U.S. Small Business Administration, Office of Advocacy, 2016. Web.
TABLE 3
SELF-EMPLOYMENT WITHIN DEMOGRAPHIC (2014) 14%
GEORGIA
12%
UNITED STATES
11.8 11.5
10%
10.6 11.0
8%
6.9 7.2
6%
7.1
7.1
4% 2% 0
FEMALE
MALE
MINORITY
VETERAN
The percent of each demographic group identified as self-employed according to the 2014 American Community Survey (ACS) 5-year estimates. Source: 6“Small Business Profile - Georgia.” U.S. Small Business Administration, Office of Advocacy, 2016. Web. | 7“Small Business Profile - United States.” U.S. Small Business Administration, Office of Advocacy, 2016. Web.
Small Business and Its Impact on Georgia, 12
Hispanic entrepreneurship more than tripled, with Mexican immigrants being the largest group. The U.S. Census Bureau estimates that one-third of Americans will be Hispanic by 2060, however, it is uncertain if the strong growth for Hispanic entrepreneurship will continue based on the unknown future of immigration legislation.4 Between 1997 and 2013, Asian American womenowned businesses grew by 156 percent nationally.
Asian American women-owned firms’ average receipts were estimated at a total value of $105 billion in 2013. Professional, scientific, and technical services are the top industries for firms owned by Asian American women.5 Minority entrepreneurs are vital to Georgia’s and the nation’s economy. They bring a diverse and knowledgeable presence to the small business world.
Source: 1 “Minority-owned Small Businesses.” Georgia.org. Georgia Department of Economic Development, n.d. Web. 9 June 2016 | 2Kavilanz, Parija. “Best Cities for Black Entrepreneurs.” CNN.com. CNNMoney (New York), 23 Feb. 2015. Web. 9 June 2016 | 3Haimerl, Amy. “The Fastest-growing Group of Entrepreneurs in America.” FORTUNE. N.p., 29 June 2015. Web. 9 June 2016 | 4Dávila, Alberto, Marie T. Mora, and Angela Marek Zeitlin. Better Business: How Hispanic Entrepreneurs Are Beating Expectations and Bolstering the U.S. Economy. Rep. The Partnership for a New American Economy, Apr. 2014. Web. 9 June 2016 | 5Ahmad, Farah Z. “How Women of Color Are Driving Entrepreneurship.” AmericanProgress.org. Center for American Progress, 10 June 2014. Web. 9 June 2016. | 6“Small Business Profile - Georgia.” U.S. Small Business Administration, Office of Advocacy, 2016. Web. | 7“Small Business Profile United States.” U.S. Small Business Administration, Office of Advocacy, 2016. Web.
SPOTLIGHT INDUSTRIES FILM & ENTERTAINMENT Georgia has benefited tremendously from the film and television industry. In the 2015 fiscal year, feature films and television productions in Georgia had an economic impact of $6 billion.1 Small businesses are enjoying the ripple effect from this industry influx as evidenced at local restaurants, renting hotel rooms, dry cleaning, massage therapy, catering services, as well as skilled labor required on film sets. Film tourism is also benefiting small communities and businesses where tourists want to visit filming locations. Georgia has developed convenient and popular perks to film here. In addition to the appeal of the diverse landscape of Georgia, the state is drawing in the industry by providing tax incentives, currently up to 30 percent of Georgia production expenditures
Small Business and Its Impact on Georgia, 13
in transferable tax credits. With the passing of the Georgia Entertainment Industry Investment Act, productions can greatly benefit their bottom line by filming here. Georgia also offers the Camera Ready Communities program that allows productions to easily use to find county liaisons who can provide local expertise and support.1
PRODUCTION CENTER
NUMBER OF MOVIES IN 2015 2014 2013
CALIFORNIA
19
22
15
UK
15
12
12
Since 1972, there have been more GEORGIA 12 10 9 than 800 film and television projects in Georgia.1 New studios are being LOUISIANA 12 5 18 built around the Atlanta metro area to support the filming demand. Although most of the growth in the film industry has been in the Atlanta and Savannah metro areas, the generous financial benefits and production assistance programs will help ensure that Georgia, overall, will continue to see growth in the film and television industry.2 Source: 1 “Georgia Film and TV Production.” Georgia.org. Georgia Department of Economic Development. Web. 23 May 2016. | 2 Humphreys, Jeffrey M. The 2016 Georgia Economic Outlook. Publication. Comp. Beata D. Kochut, Stephen F. Kuzniak, and Mary Evans. Ed. Lorena M. Akioka. Athens, GA: U of Georgia, Terry College of Business, Selig Center for Economic Growth, 2016. Print. | 3 McDonald, Adrian, and Shane Hirschman. 2015 Feature Film Study. Rep. FilmL.A., Inc., n.d. Web. 16 June 2016.
AGRICULTURE Georgia is well known for agriculture. Farming has been a way of life for generations in the south, and Georgia is no different. The Census of Agriculture found that 97 percent of all U.S. farms are
2,410
35
2,5
44 9
CHART 4
FARM TYPE FAMILY OR INDIVIDUAL PARTNERSHIP
36,863
CORPORATION OTHER
Source: 22012 Census of Agriculture: Georgia - State and County Data. Rep. no. Volume 1, Part 10. United States Department of Agriculture, National Agricultural Statistics Service, May 2014.
Small Business and Its Impact on Georgia, 14
family-owned. A family farm is any farm where the majority of the business is owned by the operator and individuals related to the operator, including through blood, marriage, or adoption.1 In the 2012 Census of Agriculture, Georgia had 42, 257 farms. Of those farms, 36,863 were family or individual owned.2 Small family farms, those reporting annual gross cash farm income less than $350,000, make up 90 percent of the farms in the U.S. Those farms operate 52 percent of the Nation’s farmland. Despite making up the majority of the U.S. farm count, small family farms produce 26 percent of the nation’s farm output. Poultry production is the top commodity for small farms.3 In 2014, the total agricultural production value for Georgia was $14.1 billion, up from $484 million from 2013. For Georgia, boilers were the top agricultural commodity
in 2014 with 32 percent share of the total commodity output for the state. Georgia’s broiler industry is valued at over $4 billion annually for the past several years. Beef production follows at 8 percent.4
TABLE 5
GEORGIA AGRICULTURE
QUICK FACTS
TOTAL FARMS
42,2572
AVERAGE SIZE OF FARM
228 ACRES2
AVERAGE AGE OF PRINCIPAL OPERATOR
59.9 YEARS2
TOTAL AGRICULTURAL PRODUCTION VALUE
$14.1 BILLION4
Source: 1United States Department of Agriculture. Office of Communications. Family Farms Are the Focus of New Agriculture Census Data. 17 Mar. 2015. Web. 12 Oct. 2016. Release No. 0066.15 | 22012 Census of Agriculture: Georgia - State and County Data. Rep. no. Volume 1, Part 10. United States Department of Agriculture, National Agricultural Statistics Service, May 2014. | 3Hoppe, Robert A. Structure and Finances of U.S. Farms: Family Farm Report, 2014 Edition, EIB-132, U.S. Department of Agriculture, Economic Research Service, December 2014. | 4Wolfe, Kent, and Karen Stubbs. 2014 Georgia Farm Gate Value Report. Rep. no. AR-15-01. The University of Georgia, College of Agricultural & Environmental Sciences, The Center for Agribusiness & Economic Development. September 2015.
MICROBREWERIES IN GEORGIA
C
raft beer breweries have sprung up across Georgia in recent years. Currently, there are 45 craft beer breweries in the state. Demand is expanding for high quality and full-flavored beers, and Georgia craft breweries are helping meet this demand. In 2014, the economic impact of craft beer hit over $1 billion. There are 365,015 barrels of craft beer produced per year in Georgia. 1
ECONOMIC IMPACT1
45
CRAFT BREWERIES1
Following national trends, Georgia is seeing an increase in the number of craft breweries across the state. The Brewers’ Association reports that the number of craft brewers in Georgia more than doubled in four years growing from 21 establishments in 2011 to 45 establishments in 2015.1 These businesses are, by definition, small businesses, and the numbers substantiate it.
927
365,015
389,120
$1 Billion
FULL TIME EMPLOYEES4
BARRELS OF BEER PRODUCED1
ESTIMATED MICROBREWERY TOURS ANNUALLY IN GEORGIA4 Small Business and Its Impact on Georgia, 15
TABLE 6
CRAFT BREWER CHARACTERISTICS SMALL VOLUME
INDEPENDENT
INNOVATIVE
CUSTOMER-CENTRIC
Produce < 6 M barrels per year
< 25% of ownership or control can be by an alcoholic beverage company that is not itself a craft brewer
Main ingredients are traditional, but creative add-ins and new interpretations result in unique brews
Supportive of local activities and direct customer contact, i.e., tours and hosting events
Source: 5 “Craft Brewer Defined.” Brewers Association. N.p., n.d. Web. 22 July 2016.
According to 2015 national data from IBISWorld, the average craft brewery employs 2.2 workers and earns revenues of about $1.4M.2 The per capita consumption of beer has remained steady over the last five years, but consumers are shifting from national labels to local favorites. The outlook for this industry appears to be strong, especially in Georgia and the Southeastern U.S. Analysis by IBISWorld shows that the Southeastern states account for about one-
quarter of the U.S. population, but only 15 percent of the craft brewers are located within this region.2 The Brewers Association underscores this point as it shows Georgia ranked 48th in the country for the number of craft breweries per capita. Interestingly, the Brewers Association also shows Georgia ranked as 17th in the country (2014) with $1.135 million in total economic impact from its craft brewers, indicative of a fertile market with successful local brewers.3
Source: 1Georgia Craft Beer Sales Statistics. State Craft Beer Stats. Brewers Association. Web. 3 June 2016. | 2Petrillo, Nick. IBISWorld Industry Report OD4302 - Craft Beer Production in the US. Rep. IBISWorld Inc., Aug. 2016. Web. 7 July 2016. | 3Georgia Craft Beer Sales Statistics. State Craft Beer Stats. Brewers Association. Web. 3 June 2016. | 4Routon, Wesley, Phillip Hartley, and Reanna Berry. Economic Contributions of Georgia’s Craft Brewing Industry, 2014. Rep. The Georgia Craft Brewers Guild, 8 Apr. 2016. Web. 21 June 2016. | 5“Craft Brewer Defined.” Brewers Association. N.p., n.d. Web. 22 July 2016.
INTERNATIONAL TRADE Georgia’s Import/Export Businesses
G
eorgia is home to the world’s busiest international airport, two deepwater ports, and a well connected transportation network that can support its growing import/export industry. According to a report by the Selig Center at UGA, Georgia is the 7th largest importing state and the 11th largest exporting state in the nation.1 In 2015, the value of U.S. goods and services exports reached $2.23 trillion.2 Georgia ports’ economic impact reaches over 369,000 jobs in the state.1 A total of 14,563 companies exported from Georgia locations in 2013. Of those, 12,927 (88.8 percent) were small and medium-sized enterprises with fewer than 500 employees. Small and medium-sized firms generated nearly one-third (30.9 percent) of Georgia’s total exports of merchandise in 2013.2
Small Business and Its Impact on Georgia, 16
$38.5 BILLION
EXPORT SHIPMENT OF MERCHANDISE IN 20152
11
th
LARGEST EXPORTING STATE IN THE NATION1
chemicals ($3.7 million); paper ($3.3 million); and computer & electronic products ($2.3 million).2
TABLE 7
15,000M
Source: 2 “Georgia Exports, Jobs, and Foreign Investment.” Exports, Jobs, and Foreign Investment. Office of Trade and Economic Analysis, International Trade Administration, U.S. Department of Commerce. Web. 6 June 2016.
14,563 12,927
10000M
89%
5000M
TH
T AT OT EX AL PO CO RT M ED PA FR NIE OF OM S TH TH AT OS GA E X E, PO SM RT A L ED L B FR US OM IN E GA SS
0
In 2015, Georgia companies imported more than $88.55 billion in goods from 187 countries and territories.3 China leads as Georgia’s top import source at 22.29 percent, followed closely by Germany at 18.48 percent. Vehicles top the commodity imports for Georgia.4 The Port of Savannah, the nation’s fastest growing and fourth-busiest container port, currently handles more than 3 million twentyfoot equivalent container units per year for more than 21,000 U.S. businesses. Georgia’s deepwater ports’ economic impact is $67 billion. The Georgia Ports Authority supports more than 352,000 jobs. Because The Panama Canal is expanding to accommodate larger vessels, the Savannah port is undergoing dredging in order to capitalize on this opportunity. The deepening of the Savannah Port is projected to be complete in 2019.5 The state’s international trade industry is not only good for Georgia, but for the nation as well. With the support of excellent infrastructure for transporting goods and planning for the future, Georgia will continue with its strong presence in international trade.
Georgia’s export shipment of merchandise in 2015 totaled $38.5 billion, with Canada being the largest market. The top exporting metro areas in Georgia are: Atlanta-Sandy Springs-Roswell (with 55.4% exporting share), Savannah, AugustaRichmond County, Brunswick, and Gainesville.2 The state’s largest merchandise export category was transportation equipment, which accounted for $10.5 million of Georgia’s total merchandise exports in 2015. Other top merchandise exports were machinery, except electrical ($4.9 million); Source: 1Humphreys, Jeffrey M. The 2016 Georgia Economic Outlook. Publication. Comp. Beata D. Kochut, Stephen F. Kuzniak, and Mary Evans. Ed. Lorena M. Akioka. Athens, GA: U of Georgia, Terry College of Business, Selig Center for Economic Growth, 2016. Print. | 2 “Georgia Exports, Jobs, and Foreign Investment.” Exports, Jobs, and Foreign Investment. Office of Trade and Economic Analysis, International Trade Administration, U.S. Department of Commerce. Web. 6 June 2016. | 3Import/Export Numbers. 2015 International Trade Numbers. Georgia Department of Economic Development, n.d. Web. 6 June 2016. | 42015 Georgia Global Trade Summary. 2015 International Trade Numbers. Georgia Department of Economic Development. Web. 6 June 2016. | 5Georgia Ports Authority. Savannah Harbor Expansion Project. Harbor Deepening Moves into Construction Phase. Web. 6 June 2016.
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ABOUT THE UGA SBDC
University of Georgia Small Business Development Center (SBDC) provides business training and consulting services to help small businesses grow and succeed. Working with chambers of commerce, banks, and other business development organizations, the SBDC provides business owners information, tools and resources to grow their businesses, as well as helps aspiring entrepreneurs improve their chances for success. Considered to be one of the nationâ&#x20AC;&#x2122;s top providers of small business assistance, the SBDC can help in the areas of business planning, market development, accessing capital, record keeping, and a myriad of other topics through various educational and technical assistance activities. Since 1977, the SBDC, consisting of 17 offices from Rome to Valdosta, has helped construct a statewide system to foster the spirit, support, and success of hundreds of thousands of communities, entrepreneurs and innovators. The UGA SBDC is a Public Service and Outreach Unit of The University of Georgia and is funded in part by the U.S. Small Business Administration (SBA). The University of Georgia Small Business Development Center is nationally accredited by the Association of SBDCs and SBA.
CONTACT US: The University of Georgia Small Business Development Center 1180 E. Broad Street - Chicopee Complex Athens, GA 30602-5412 O: (706) 542-2762 | F: (706) 542-7935
www.georgiasbdc.org
Small Business and Its Impact on Georgia, 18
Small Business and Its Impact on Georgia, 19
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ACCREDITED MEMBER
1180 E. Broad Street - Chicopee Complex, Athens, GA 30602-5412 O: (706) 542-2762 | F: (706) 542-7935 | www.georgiasbdc.org A Public Service and Outreach Unit of the University of Georgia
Small Business Fundedand in part Its through Impacta on Cooperative Georgia,Agreement 20 with the U.S. Small Business Administration.