Barriers to small business development Chapel Hill, NC

To learn about barriers to market entry for local small businesses, the Town of Chapel Hill hired a consultant to speak with owners, managers, and other individuals knowledgeable about small business development and operation in Chapel Hill. From the 17 completed interviews, several issues emerged as barriers to entry for small business in Chapel Hill. The findings presented here will inform future policy decisions and programming opportunities by local government and non-government groups to facilitate small business development and retention in Chapel Hill. Business owners and managers, as well as developers and other individuals knowledgeable about the local business climate, were asked the following questions: What are the positive aspects of working with the Town to open/operate a business? What are the negative aspects, challenges, or barriers to opening a business in Chapel Hill? How could the Town better serve its small business owners? A. POSITIVE Chapel Hill's location--close to major transportation routes as well as the University of North Carolina--and its customer base were noted as positive aspects of doing business locally. In addition, interviewees praised efforts by the Chapel-Hill Carrboro Chamber of Commerce--including promotion of the "Buy Local" initiative--and the Chapel Hill Downtown Partnership. One business said the Town staff had been "good facilitators" for opening a business, but vast criticism of the Town's development processes overshadowed this sparse praise. B. NEGATIVE The majority of comments about barriers to small business development addressed issues in local government. Topics ranged from the Planning Department's sign ordinance and permitting process, to the high cost of property taxes and lack of step-by-step instructions for new businesses. Issues specific to downtown businesses included high rent, a lack of retail diversity and density, problems with parking availability and costs, and the presence of homeless people and panhandlers. Businesses that have operated in both Chapel Hill and other municipalities cited a few differences between local government policies, including a more straightforward process in Carrboro and Chatham County and the availability of low-interest loans, cheaper space, parking, highway access, and straightforward development review in Durham.Master of City and Regional Plannin