What Are the Top Priorities for Small Business?

I spend a lot of my time talking to business leaders, of both large and small organizations. And I ask them: what are you worrying about, what are you prioritizing for the year ahead?  Here is what they are telling me:
 
For the vast majority, public safety continues to be their #1 concern. Employers want to welcome employees back; public safety concerns are seriously interrupting that. One employer said, “if people don’t feel safe to come back to the office, we are in big trouble.” Another: “we recognize the need for a strong downtown core. How we do it is as important as what we do. If employees have a choice to come back downtown, safety issues are key.”
 
Their #2 concern is talent attraction and retention.  Companies are telling me they are at all-time highs in terms of open positions.  And several have told me stories of losing employees to virtual positions with companies located out of state.
 
Other concerns continue to be:

• Ongoing supply chain challenges
• how to transition to this “next normal” in the work environment (no clear consensus on work schedules – they vary widely!)
• workplace culture – how to balance between collaboration and flexibility
• investing in digital tools and skills

 
This article also communicates small business worries: inflation and rising costs. 33% of small business owners now rank inflation as the biggest challenge for the small business community. 85% of them say they are concerned about its impact on their own business.
 
If your concerns are different, let me know.  I keep track and share with local and state leaders. Your input is valuable!
 
A pause for our colleague and friend, Cat McNerlin, who passed away March 29, 2021. It’s her birthday today, she would have been 52 years old. Cat was famous for her Wonder Woman mugs, signs, posture. And she also would have reminded us that today is National Cereal Day.  I wore my Wonder Woman  t-shirt to honor her today, our team laughed and sighed together at our team meeting as we thought about her.   Cheers to Cat; she is missed.
Wild beat the Flyers, ended a 4-game losing streak. Woot!

See you in the trenches.
B

• Yes, folks, it’s been 2 years since Minnesota recorded its first case of COVID-19. How are we doing? “COVID-19 remains one step ahead.”
• Worldwide, the death toll has surpassed 6M for the pandemic, now in its 3rd year.

• The effect of the pandemic on retail and e-commerce: total sales up 19.3% in 2021 over 2020, despite the headwinds of inflation and supply chain challenges. Much of it was online, which will drive even more emphasis for brick and mortar businesses to differentiate themselves. Read Morning Consult’s State of Retail and E-Commerce, Q1 2022 Report for more.
• According to AAA, U.S. gas prices nationally reached a 14-year high, up to $4/gallon as of Sunday (the highest since July of 2008). And the Biden Administration is discussing with our allies the possibility of a ban on Russian oil imports.  
• Inflation is likely to get worse after Russia's invasion of Ukraine, with Federal Reserve Chairman Jerome Powell noting in his testimony before the Senate Banking Committee last week that the war will increase energy and transportation costs. What to keep an eye on: The Biden administration's moves to combat inflation. Officials are reportedly considering a ban on Russian oil to punish Russia, but the administration is first weighing whether the move could backfire and hurt American consumers via higher U.S. gasoline prices.  

​Public Safety:

• Both St. Paul and Minneapolis are beginning the process of finding new police chiefs. I wish them all the best for this challenging task. In St. Paul specifically, I can say that Chief Axtell’s shoes will be hard to fill. We will continue to track the progress.
• Your Chamber is continuing to host public safety listening sessions. Please join us to voice your experience, and share these opportunities with other St. Paul businesses within your networks.

 
Federal:

• Lawmakers face a Friday deadline to pass legislation to avoid a government shutdown, with the White House pressing lawmakers to include a last-minute request for $10 billion in emergency military and humanitarian assistance for Ukraine and Eastern Europe following Russia's invasion as well as $22.5 billion to pay for the government's COVID-19 response. 

 
State:

• Refunding the Unemployment Insurance Trust Fund is a top priority of business to avoid an increase by March 15. Still not done.
• Hospitality Recovery Grants: on Wednesday at 3:00 p.m., the Senate Jobs and Economic Growth Finance and Policy Committee, chaired by Senator Eric Pratt (R-Prior Lake), is scheduled to hear Senate File 2695. This legislation, authored by Senator Matt Klein (DFL-Mendota Heights), appropriates $2.8 million from the state’s fiscal recovery fund to the Department of Employment and Economic Development for hospitality recovery grants. Under this proposal, eligible hospitality businesses could receive up to $10,000 from the state to address adverse effects to their business related to the COVID-19 pandemic. Priority in awarding grants would be given to businesses that have not previously received any COVID-19-related state or local grants or aid, with the exception of the small business relief grants passed by the legislature in December of 2020. The grants may be used for business operations, payroll, rent or mortgage, utilities, and other business-related expenses.

 
Regional

• St. Paul Mayor Melvin Carter appeared before the state Senate Housing Finance and Policy Committee last Thursday to answer questions about rent control, as he oversees implementing one of the most stringent policies in the country and the only one in the Midwest. 
• Issue Forum on SPARK Property Tax Campaign: Join us on Tuesday, March 22 to hear from members of the SPARK coalition who are promoting a property tax referendum to raise dedicated funds for early childhood education. Speakers will include Rebecca Noecker, Tim FunkMeyer, and Art Rolnick.  Tuesday, March 22 4:00-5:00PM. RSVP here for the Zoom link.

 
Read more updates in our weekly Chamber Advocacy Update.

• Have you heard? Congratulations to Roseville! Their Roseville in Bloom campaign was awarded the statewide Marketing Campaign of the Year by Explore Minnesota. Inspired by the famous Peanuts characters found around St. Paul, the display called on 20 local and regional artists to bring their paintings to life on rose statues around town. Check out their website, www.rosevilleinbloom.com for additional details.
• March is Women’s History Month. Join us on March 9 for Lunch with Leaders, featuring mavericks:  Kenya McKnight-Ahad, Founder/President of Black Women’s Wealth Alliance; Major General Johanna Clyborne, Assistant Adjutant General; and Lara Juras, Executive Vice President of the Minnesota Vikings. Register here by noon!
• It's that time again: Minnesota Manufacturing Awards, hosted by the MSPBJ. Also, if you could promote the nominations in your network, that would be wonderful.

• How do you hold remote teams accountable? Patrick Lencioni talks about accountability, how a fear of conflict can interfere, and how to build trust – even through Zoom and emails.

• Our 2022 Equity Leadership Series, presented by Bremer Bank, kicks off on March 16. Facilitated again this year by Anika Ward of Sankofa Leadership Network. Register here.  We are keeping this virtual because so many of you are inviting colleagues from outside this market to participate. Do join us!​

• On Friday the St. Paul Planning Commission held a public hearing on Hillcrest’s proposed master plan. Opposition seems to be centered around “keeping the area quiet.” Here’s hoping the community ultimately welcomes the energy and increased vitality the project will bring to the East Side.