MILWAUKEE — Milwaukee has a strong network of support systems for Wisconsin business owners but lacks a central organization to streamline that support, according to the latest Wisconsin Policy Forum report.
The report analyzed 50 public or nonprofit business support organizations in Milwaukee that focused partially or exclusively on “Main Street” type businesses, such as restaurants or retail.
Over the years, businesses have continued to expand in the county.
The amount of micro and small businesses — defined respectively as those with fewer than 10 employees and those with 10 to 99 employees — in Milwaukee County grew 2.7% from 2012 to 2020, outpacing several peer counties examined by the Wisconsin Policy Forum. Those businesses are also stable. At least 42.7% of all businesses in 2012 had been established for 11 years or longer. In 2020, that percentage grew to 48.1%.
However, where those businesses are based varies across the map. Data shows that in certain areas, such as the 53202 (lower east side of Milwaukee) and 53226 (Wauwatosa) zip codes, businesses are abundant, measuring in at or above 1,000 small businesses.
In Milwaukee’s north side (53205 and 53206), St. Francis (53235) and Hales Corners (53130) zip codes, that number is much smaller. Each had fewer than 200 micro and small businesses combined. Wisconsin Policy Forum officials said this may indicate a greater need for business development support in these areas.
And for all these businesses, Milwaukee County has far from a lack of support to offer.
There are nine city, county, state, and federal governmental organizations, 11 chambers of commerce, 31 business improvement districts (BIDs), several community development corporations (CDCs), two business incubators in the city’s Bronzeville and Sherman Park neighborhoods, four industry cluster organizations, and 18 other non-governmental support groups.
Despite these supports, the Wisconsin Policy Forum report finds there is no central “backbone” to unite them. There are several groups that have attempted to create such a structure in the county.
The Small Business Affinity Group was one such group, but it ended in 2018. In the time that it was around, the organization developed a directory of Milwaukee’s small business support groups and their services. The group also looked at how to strengthen that support system.
Three other groups have emerged since that group folded, including Marshaling Our Resources (MOR), the Ethnic and Diverse Business Coalition (EDBC) and Project Roundtable for Economic Access and Change (Project REACh). Officials said these groups “show promise,” but that it’s too early to see their effects.
They also said that Milwaukee still lacks a “clear leadership role” in providing supports. Officials said certain case studies show that having cohesion among supports can be beneficial.
In Kansas City, a group called KCSourceLink directly helps entrepreneurs and also brings together business support organizations and other leaders/stakeholders to identify gaps in services and help find solutions.
What seems to be a trickle effect from the lack of cohesion in Milwaukee is a hard to find “front door” for new businesses seeking resources.
Wisconsin Policy Forum officials reported that many people in their research said there needs to be more efforts put toward helping current and aspiring entrepreneurs find and connect to the network of business supports in Milwaukee.
“This may be particularly helpful for reaching those in lower-income Milwaukee neighborhoods,” the report reads.
Wisconsin Policy Forum officials suggested establishing a business center as one solution. That center could be a central place where multiple business support groups could provide assistance.
Another approach suggested was “no wrong door,” meaning “business owners could receive referrals to a broader network of services regardless of which group they approached first.” Some interviewees also said more marketing and outreach, particularly from leaders of color, would be beneficial for the county.
When it comes down to the actual help being offered, the Wisconsin Policy Forum found there were also some capacity gaps. The three main areas mentioned by interviewees were one-on-one business coaching, financial education and access to capital.
One-on-one coaching has been proven to be highly effective, according to the report. However, few organizations offer the opportunity and if they do, the capacity for it is limited.
Financial education services do also exist in the county, but officials said it would benefit from expanded efforts, as “poor financial management skills among entrepreneurs in Milwaukee is another common concern.”
These gaps only limit opportunities for success in the county, Policy Forum officials said.
One final suggestion that the report mentions is getting philanthropic organizations more involved in supporting entrepreneurs. Funder collaboratives have been established in other states, such as Chicago and Detroit. These helped the local entrepreneurship ecosystem through grants to business support organizations and collaborative efforts among them as well as other initiatives.