Local small businesses struggle under local big business policy

Small businesses play a vital role in economic life throughout the Miami Valley. From Dayton’s urban neighborhoods to Springfield’s service sector employers and Hamilton’s Main Street storefronts, locally owned businesses help define and in many ways fund the character of each community.

These businesses create jobs, circulate money locally, and give downtowns a reason to exist and sponsor local little league teams.

According to the U.S. Small Business Administration (SBA), small businesses account for about 99.6% of all Ohio firms and employ roughly 44% of the private workforce. In Ohio, small businesses have generated nearly all the new net jobs.

In the Dayton, Hamilton, and Springfield areas, according to the National Bureau of Labor Statistics, average wages for service and retail jobs lag national averages. In 2025, job growth in the Dayton metropolitan area payrolls increased by about 0.4%, trailing Columbus and Cleveland. Hamilton at 0.3% and Springfield declined by two percent.

Despite their obvious job creation importance, small businesses face regulatory and cost pressures that fall more heavily on them than larger businesses. Permits, fees and compliance requirements that are manageable for corporations with extensive resources can pose serious challenges for locally owned operations.

In today’s economy, small businesses must not only compete against many big box stores but with Amazon. Changing consumer habits are part of the picture, but they are not the only factor. Before earning their first dollar, small business owners are forced to navigate zoning approvals, inspections and permitting requirements at the city, county and state levels. Delays from the government processes cause the small business to have additional rent, utilities and other fixed costs before being able to formally open.

For larger companies, these costs can be absorbed as routine overhead. For a small coffee shop or boutique in Dayton or Hamilton, they can significantly increase financial risk and discourage expansion or even entry into the market.

Locally, many of the larger businesses are given more incentives from Ohio through the Dayton Development Coalition along with other local government economic incentives.

This column first published in the Dayton Daily News, where Rob Scott is a weekly opinion contributor. See the rest of it here.