The Impact of Local Entrepreneurship on Neighborhood Revitalization

The first thing people notice when driving into a neighborhood is its businesses. After all, local entrepreneurs are the backbone of every proud and prosperous community. Here is a look at how entrepreneurship shapes neighborhoods, plus three popular areas revitalized by hometown merchants.

The positive impact of small businesses

Small businesses encourage economic growth and build loyal customer bases within their districts. Neighborhood revitalization is especially important for urban areas on a downward spiral. For instance, Baltimore experiences 1,605.5 violent crimes per 100,000 city residents annually. 

Even a coffee shop owned and operated by a local entrepreneur can make a difference. Some of the benefits of these small businesses include:

• Employment: More small businesses create jobs for residents.
• Tax advantages: Sales tax revenue supports local schools, police and fire departments, and other essential services.
• Innovative products: Diverse and innovative products found nowhere else are readily available for purchase.
• Less infrastructure: Local businesses occupy existing infrastructure, preserving the neighborhood's history and lowering spending costs on new construction. 
• Community participation: Small businesses help preserve a town’s culture by participating in local government decision-making and giving back to the community.
• Identity: Entrepreneurs create and maintain community identity, which influences tourism.

Entrepreneurs succeed by drawing from existing talent and partnering with other local entities. Business partnerships allow them to build a supplier network and solidify future growth opportunities. Economic and social outcomes are only possible with the residents behind revitalization efforts.

Building community: Three neighborhoods touched by local entrepreneurs

All communities thrive from local entrepreneurship. Small businesses can quickly shake a neighborhood from its slumber and breathe new life into it. Here are three places reaping the benefits of revitalization.

1. The Milk District in Orlando, Florida

The Milk District is a bustling downtown neighborhood in Orlando, Florida, but it wasn't always lined with quirky storefronts. In 1925, the area was pastureland — the perfect place for native Floridian and entrepreneurial pioneer Thomas Gilbert Lee to start T.G. Lee Dairy Farm. By the 1930s, Lee became a local household name as a milk distributor.

Today, the walkable eight-block by four-block district sparkles with street art and whimsical murals. The neighborhood especially attracts art enthusiasts, with several galleries and souvenir stores. Foodies can also dine at numerous one-of-a-kind eateries and food trucks to satisfy their cravings, such as the Drunken Monkey Coffee Bar and Whiskey Lou's Lounge. 

2. Little Italy in Cleveland, Ohio

Cleveland's Little Italy is a beautiful representation of the city's rich immigrant history. However, the neighborhood struggled to establish itself in the 1980s. Nevertheless, small-business owners saw the potential in the existing architecture and eventually opened storefronts, cafes, and restaurants.

Little Italy is at an impasse as investors seek to develop the historic district — a move many fear will ruin the character and nostalgia. The crumbling infrastructure is behind investors' motives, as they say it's more costly to renovate the historic buildings than demolish them and rebuild.

The new designs mimic the neighborhood's current aesthetic to keep it cohesive. However, the developers should also consider sustainability to ensure long-term comfort and durability. For instance, smart meters provide invaluable energy insights in real time to cut costs, while building management systems can automate HVAC, security, and lighting control.

3. Larchmont Village in Los Angeles, California

Larchmont Boulevard — the main strip in Los Angeles's Larchmont Village — underwent revitalization in the 1920s when Midwest developer Julius La Bonte came to town. His influence sparked a flurry of stores, restaurants, and a bustling farmers market in what became recognized as the first neighborhood shopping center in the city. 

In 2018, a real estate investment firm purchased a structure on Larchmont Boulevard — its first transaction in 100 years — and turned it into Larchmont Mercantile. The historic building offers 17,000 square feet of commercial space and is now home to 14 shops. 

How urban planners can support local entrepreneurship 

Urban planners play an essential role in neighborhood revitalization. They can support local entrepreneurs by creating policies for mixed-use developments and streamlining permitting. Offering grants and tax credits will also encourage investors to channel funding into underserved communities.

Likewise, urban planners should maintain community infrastructure, including revamping bike paths, public transportation, and parks. The better a neighborhood looks, the more people and businesses it will attract. 

Supporting neighborhoods one business at a time

Small businesses are the main ingredient in a flourishing, tight-knit neighborhood. Communities need local entrepreneurs to create more livable spaces and enhance people's livelihoods.