WIHTBY FIREE PRESS, WEDNESDAY, OCTOBER 25, 1989, PAGE 7 PAGE SEVEN SOME TTIOUGHTS ON SMALL BUSINESS WEEK Rockin' Robin, Peaches In Jeans, the Hatch House, Danielle Champagne, Gregory's Men>s Wear, No Friils Furniture, Taco Town, Hansel and Gretel, Tenals Diner, Dutch Deli, Lloyd's Fish, Born to Shop, Sheriff's Manor, Something Different, Marigold Office Supplies, Smitty's Pancake House, ... the list goes on. These are just a few of the businesses that have corne and gone in Whitby in the last three years. Some you may recognize - others. were there so short a time, people neyer knew about them. They are a symptomn of fundamental problems in the world of small business. The steries are ail different - a few went bankrupt, a few others may still be operating out of a basement somewhere,* but most simply closed their doors. Each one was a dream that died. Each one was a lot of money down the drain. Considering that small business creates the vast majority of new jobs and most of the economic innovation, the malaise that affects this secter is worthy of a lot more attention than it gets. The reality of small business is that it is, without a doubt, the fastest way te lose your life savings. The malaise is a lot deeper than the list above - for every business that closes, there are three more that hang on by their fingernails keeping their dreams alive. And that's the key problem - most sniall businesses are buit on dreains. It rnay have been a desire te be self-employed, it xnay have been a successful career making somebody else rich, it may have been aý lay-off, or maybe an idea or opportunity that was simply tood-good te asBs up. But while dreams are necessary, successful businesses run on money and people and there's usually a shortage of both. Virtually every small business, even those that are wildly successful, have problems with not enough money and/or the inability te flnd good staff. These problems are compounded by a lack of knowledge and preparation for what business is ail about. In the newspaper business we see these people even before they open their doors. They know intuitively that they have te advertise their business -, at least the opening - but few have even the remotest idea of what it wilI cost. When they've picked themselves up off the floor, they agree on a prograrn of advertising which is usually far less than is necessary for them to succeed. The expectation that the world will beat a path te their door dies painfully. Most small business people Iack the knowledge te succeed. There is very littie in our educational system at any level that is oriented towards entrepreneurship and most people, of necessity, have to learn the skills on-the-job. It can be very costly. Some changes are taking place. Durham College, for example, offers a small business program, but it is separate fromn the main college streamn. By the time most budding entrepreneurs realize they need it, they can afford neither the time nor the money. There are other services tao, such as the FBDB's Case counselling programn where retired business people provide help at very reasonable rates, but most such assistance is sought and received far too late. Educaters have to recognize and meet these challenges. Hand-wringing doesn't count. Education is aiso, the key to the lack of good staff. We have high unemploymnent, especially amnongst young people, yet business is begging for good staff. Our educational system is simply not providing the right skçills - the costs in lost time, effort, esteem and unempioyrnent insurance is inexcusable. The other big problem that simail businesses face is lack of capital. It is an endemic problem in Canada that only big business has ready access te capital. The big banks, in spite of ail their advertising, are stilli oriented towards security and demonstrated ability te repay - in other words, if you don't already have it, they wen't lend it te you. It does net matter a whit how geod your business plan is; our ban"~ will net take risks on small business. Big business, yes; third-worldcoun- tries, yes; leveraged buy-outs, yes; but small business, ne. And in comparison te the United States there is virtually ne venture capital in this country. There are se few venture capitaliste, that they can demand outlandishly dispropor- tionate returns for their meney and get it. The vast majority of small business in this country is ultimately financed by what is called 'love" money - whatever can be scraped together frein family and friends. That kind.] of --al cmimettatpt-ee&higo OU) BACKSMIHS SHOP AT HAMER'S CORNERS, 1961 This stone building, one of the first built in Whitby, dates from the 1820s and was located at the north-east corner of Dundas and Anderson Streets. It was demolished in 1963, and the site is now occupied by Lloyd's Bank. Whltby Archve. photo 10 YEARS AGO from the Wednesday, October 24, 1979 edition of the WHITY FREE PRESS' " Town Couneil bas approved developinent of Brooklin, with a lot of strings attached. " Plastic Surface FInishers has won an "A for Achievement" award from the Ontario Government. " A Handi-Transit service for disabled people will start in Whitby at the end of thià smonth. " Ann Pardon, the top student at Anderson Collegiate, bas won the Mayor's Medal and the first W. A. Andrew Memorial Award. 25 YEARS AGO from the Thursday, October 22, 1964 editionof the WHITBY WEEKLY ]NEWS " Town Council is hedgn on final approval of the Court House as a Centennial project. " The number of speakers is limited at an annexation meeting between Whitby Town and Township. " A 7th Whitby Brownie Pack will begin meeting in the basement of the Hebron Christian Reformed Church. " The Henry Street High Sehool Drama Club is preparing te present "The Admirable 75.YEAIRS AGO from the Thursday, October 22, 1914 edition of the 1WHITBY GAZETTE AND CHRONICLE " A mgimoity of Whitby ratepayers have voted in favor of a bylaw te build a Hydro electric railwayfrom Whitby to Port Perry. " 5ir Adam Beck, founder of Ontario Hydro, spoke in Whitby last week -on the electric railway proposai. " Any suspicicus character ini Whitby is liable te be arrested as a suspected German spy. M - - - - - - - - - - - - - - - - -