Small Business

Chicago’s 27th Ward: Small Businesses Vital To City Development

Small businesses are important to the vitality of any local economy. According to a report from DailyFinance.com, approximately 68% of the revenue generated by small businesses stays within the local economy through taxes, payroll and other expenses. Only an average of 43% stays local with chain retailers, and online retailers often provide very little value to the local economy. More needs to be done to protect this vital resource, but currently there are many discouraging factors for local businesses and future entrepreneurs enrolled in business classes online and in campuses.

Taxes Discouraging Purchases In The City Of Chicago

One major factor hurting local small businesses is the current tax rates. The City of Chicago has ramped up the local sales tax to try and generate more revenue for the city. This instead hurts the revenue of the small businesses in Chicago. With fewer purchases being made, the city revenue is also being affected. Instead of paying the higher tax rate, buyers choose to go outside of Chicago to nearby cities to make purchases. Another tax that is pushing small business out of Chicago is the real estate property tax. Small businesses relocate to find less costly property or close their shops completely. A third tax that must be addressed is the real estate transfer tax. This is paid by both the buyer and seller when property is sold in the City of Chicago.

Chamber of Commerce Working For Small Businesses

The Chamber of Commerce has been instrumental in fighting for small businesses in the city. They were a significant stakeholder pushing through reforms to the McCormick Place Convention Center. If changes to the fees were not made, the City of Chicago would have lost substantial revenue from major exhibitions. This would have hurt small businesses in two ways. First, the small businesses that participated in these shows would have lost the marketing value provided. Second, the exhibitions bring in people to the city that spend money which boosts the local economy. Steps that promote economic growth must be made to support small businesses.

Campaign For Change Proposes Steps For Improvement

At the Campaign for Change, we believe there are several steps the City of Chicago can make to improve the local economy.

•   Lower the sales tax to bring back business within the city
•   Introduce tax incentives or rebates for real estate taxes paid within commercial and industrial zones
•   Hire and retain police officers to fight the growing crime within the city
•   Give practical instruction on setting up a small business through the city colleges