Small Business Success and the U.S. Economy

The U.S. Small Business Administration recently cosponsored the 2004 National Signage Research Symposium in Orlando Florida, with the Signage Foundation for Communication Excellence.

Among those participating, were the New York State and Nevada Small Business Development Centers, The University of Nevada at Las Vegas, and The International Sign Association. Other participants were retired and current highway traffic engineers,
attorneys specializing in various aspects of sign litigation, academics, national sign company owners, and yours truly.

Why would the SBA and the Signage Foundation,assemble such a high powered group of individuals on behalf of the small business owners and their signage? Could it be that on-premise signs have more importance than is usually credited by the average small business owner?

The tax reduction package instituted by President George W. Bush, gives large tax breaks to the small business owners who invest in the expansion or development of their businesses. There are those in our government that recognize that the small business is the life blood of our national economy. Policies that support small business health and well being benefit all Americans.

The SBA recognizes that the national economy is adversely impacted by issues that impede small business success. One such issue is that the small business community has not properly been educated to the relationship between signs and the vitality of small businesses.

One response, to that issue, was introduced, at the Symposium, in a book entitled "What is your signage?" A handbook developed by The New York Small Business Development Center and the Signage Foundation for Communication Excellence, with the support of the SBA. The subtitle of the publication, highlights the main concept of the book. "How On-Premise Signs Help Small Businesses Tap Into a Hidden Profit Center."

The publication is intended to educate the small business owner to the benefits and profits that can be gained by correct sign usage. (For your copy contact your local SBA or SBDC office.)

As a participant in the Symposium's public policy panel, I was able to suggest the need for a study showing the national economic impact as a result of enforcement of city sign codes that are unfriendly to small business. By quantifying the actual revenue loss through lost sales and cost to the economy from failure of small businesses on a national basis, public support for the rights of small business can be won. The imposition of governments into the affairs of small businesses through sign regulation, not only impedes the small businesses fiscal health, but the health of our national economy.

The Symposium's objectives are clear but difficult. Educate the small business public to the impact of signs on their finances while helping those small businesses that must cope with unfair, unwarranted, and anti-business sign codes.

The answers lie in a national approach, not in fighting the cities one business at the time. By showing that the problem is systemic on a national level, points to a need for sign regulation reform. The type of regulation that cities, counties, states and the federal governments utilize in our street, highway and interstate systems would be useful in the regulation of on-premise signs. The signs used in our transportation system are governed by a manual entitled "The Manual for Uniform Traffic Control Devices" or MUTCD for short.

The MUTCD was developed and is maintained by highway traffic engineers working in conjunction with the National Academies of Science Transportation Research Board.
After their findings become policy by the TRB, they are adopted by the Federal Highway Administration. Local governments are required to adhere to the MUTCD in order to receive federal street funding. This is beneficial because the mission of the MUTCD and the federal Highway Administration, is safe way finding for all motorists and pedestrians.

By including on premise street signs in the way finding mix, the issue becomes a highway safety issue. This approach should satisfy all, as most city sign codes point to public safety as the overwhelming reason for heavy handed sign regulation. It should also satisfy the small business community, as this process would by necessity, establish minimum safe sign standards and thus stop the on-going stifling of sign size and free enterprise.

While it is yet unclear how or when the result of this project may be realized, one thing is clear. There are long term economic benefits to all Americans if small businesses succeed.

If your city will still allow you to create a sign that will increase your own personal economy, consider taking advantage of the opportunity. In so doing you will help the U.S. economy as well.

Perry Powell is a sign consultant to the Car Wash Industry.
He is a member of the National Academies of Science Transportation Research Board's On-Premise Sign Sub-committee.

He can be reached by:Telephone: 817-307-6484

Email Perry