Economic Gardening: Policy Approaches to Grow Your Own Businesses

Recruiting outside companies often gets the headlines, but for smaller towns, the real engine of economic growth is your existing businesses.  These “homegrown” companies are invested in your town’s future, pay local taxes, and are more likely to stay through economic ups and downs. Economic gardening—focusing on nurturing local entrepreneurs and helping existing businesses expand—delivers steady, reliable results, often at a lower cost and with less risk than chasing big outside employers. For small towns with limited budgets and staff, investing in your own business community is the most effective—and sustainable—path to economic vitality.

Identifying Local Businesses with Growth Potential

Not every business is poised for rapid expansion, but many have untapped potential. Focus your limited resources where they’ll have the greatest impact:

• Look for “Stage 2” companies—those with 10-100 employees. These firms create about 40% of new jobs and are often ready to scale up with the right support.

• Use local knowledge: Ask your chamber of commerce, business association, or local bankers which businesses are growing, hiring, or investing in new products.

• Conduct simple surveys: Reach out to business owners with a short questionnaire about their plans, challenges, and needs. Even a quick phone call or online form can reveal who’s ready to expand.

• Watch for signs of growth: Businesses adding shifts, expanding space, or investing in equipment are good candidates for targeted support.

Low-Cost Municipal Programs to Support Local Entrepreneurs

You don’t need a big budget to make a big impact. Here are some practical, affordable programs:

• Business directories and “shop local” campaigns: Publish a simple online directory of local businesses and promote it through city channels. Organize “shop local” events or seasonal promotions to boost visibility and sales.

• Workshops and mentoring: Partner with local colleges, retired executives, or business owners to offer free or low-cost workshops on marketing, finance, or digital skills.

• Microgrants or revolving loan funds: Even small amounts—$500 to $2,500—can help local businesses buy equipment, upgrade storefronts, or launch new products. Look for state or national grant programs to supplement local funds.

• Business incubators or shared spaces: If you have underused municipal buildings, consider offering affordable office or retail space to startups or growing businesses.

• Regular business roundtables: Host quarterly meetings where business owners can share challenges, connect with city staff, and learn about available resources.

Measuring Impact and Building Community Support

To sustain momentum and demonstrate value, it’s essential to track results and share success stories:

• Set clear, simple goals: Examples include increasing local business sales, reducing permit times, or adding new jobs.

• Track key metrics: Monitor the number of business licenses issued, jobs created, or participation in city programs.

• Collect feedback: Use surveys or informal check-ins to gather input from business owners about what’s working and what needs improvement.

• Share success stories: Highlight local businesses that have grown with city support in newsletters, on your website, or at public meetings. Storytelling builds community pride and helps justify continued investment.

Conclusion: Take the Next Step for Your Community

Supporting local businesses doesn’t require a large staff or a big budget—just a willingness to listen, remove barriers, and invest in your own community’s potential. By focusing on economic gardening and practical policy tools, your town can nurture homegrown businesses, create jobs, and build a more resilient local economy.

If you’re ready to take your business support efforts to the next level, consider contacting HSC to help you develop and implement a comprehensive economic development strategy tailored to your community’s unique needs. Together, we can help your town—and your businesses—grow from the inside out.