Small business is alive and well in Atlanta, even in a down economy, according to a recent study.
The American Express OPEN Independent Retail Index is the first-ever 20-year analysis of America’s small businesses on national, city and neighborhood levels.
“We had a Dun & Bradstreet database from 1990-2009 that allowed us to look closely at small-business vitality in 15 American cities and 27 neighborhoods, including Virginia-Highland,” said Matt Cunningham, partner with Civic Economics, a Chicago- and Austin-based economic development and planning firm that conducted the study.
“Between 2000 and 2009, Atlanta moved up, from 13th to ninth in the city rankings for small retail and restaurant vitality," Cunningham said. The Atlanta data in this study included all of Fulton County. "That’s a big jump, especially since some cities moved down in the same period. It shows that Atlanta has more locally owned business than one would suspect.”
Market share is one indicator of vitality. In Atlanta, independent retail shops lost 7 percent of the market (53 percent to 46 percent) between 1990 and 2009, which was the third smallest decrease among the 15 cities studied. At the same time, independent restaurants and bars lost only 1 percent of the market, dropping from 63 percent to 62 percent.
“For the first time, we have evidence that shows that core communities with a thriving independent business district have more resilience. That’s an encouraging trend,” Cunningham said.
Warren Bruno, who owns Atkins Park Restaurant in Virginia-Highland, knows what helps small businesses thrive.
“For a small business, it helps to be in a neighborhood -- other businesses help generate foot traffic -- and standing behind your own counter. People get to know you and support you,” he said.
The study looked at the impact of surrounding real estate values on the vitality of local business concentration. Virginia-Highland’s real estate grew by 118.5 percent during the period, while Atlanta’s grew by 82.4 percent. Employment by independent businesses showed a steady increase over the 20 years.
“Whether a vibrant small-business district or a neighborhood comes first is the million-dollar question,” said Cunningham. “We see the two going hand-in-hand. People want to live where they have a short commute, close shopping and other amenities, and local businesses depend on neighborhood customers.”
Bruno bought Atkins Park Restaurant in 1983 as a “diamond in the rough.” “I owned a bar in Buckhead, but I love old architecture and the inner city. This restaurant has been my baby and a good friend,” he said. He’s evolved the menu from burgers and sandwiches to chef-driven Southern cuisine, made with fresh, locally grown ingredients.
There were a couple of restaurants, a shoemaker and a furniture refinisher on the street when Bruno started. Other restaurants and shops started coming by 1985.
“We all worked together to start Summerfest in the mid-'80s and later formed a business association. We grew with the community, doing fundraisers for local schools and giving organizations a place to meet,” Bruno said.
The recession brought belt-tightening to many businesses and the closing of a few, he said, but he’s seen the Virginia-Highland business district grow more diverse, with the opening of Glamour Paws, Yogli Mogli, and Cacao Atlanta Chocolate Co.
“We have three to four coffee shops, and that speaks to the foot traffic in this area. It takes a variety of businesses to make a district work, but small business is a vital part of the Atlanta economy,” Bruno said.
George’s Bar and Restaurant has been selling burgers in Virginia-Highland since 1961.
“We’ve done OK in the recession, because we’re an affordable family restaurant and we have many regulars from the neighborhood,” said George Warner, manager. His grandfather, George Najour, started the business, and his uncle G.G. Najour followed.
“My grandfather saw this as a good area. People lived here and more have moved in. Our business benefits from all the strong businesses around us,” he said. “Highland Woodworking is known around the Southeast, and we get customers from all the boutiques. I think Virginia-Highland has survived well during the recession.”
So have other Atlanta small-business hubs, such as the Westside Provisions district on Atlanta’s west side. Visibility, proximity to other shops, shared marketing efforts and a pedestrian-friendly atmosphere attract local and destination shoppers.
Cunningham said that one of the tangible benefits of small-business vitality is that it keeps the money in a community. Unlike chains, independent businesses often buy local goods and hire local lawyers, accountants and other services.
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