Innovators & Job Creators Define L.A. Business

by Maria S. Salinas

The Los Angeles regional economy is large, diverse and a significant contributor to California's economy. This region leads in a variety of industry sectors; aerospace and defense, bioscience, technology, innovation, clean tech, entertainment, global trade and more. Los Angeles is an innovation center because of the many emerging industries that find a home here. And, as we navigate this health and economic crisis, the role of the innovators and job creators has never been more important. If we are to have a swift economic recovery, we need businesses to return and we need new jobs to be created.

Nationally, we know that small businesses drive the economy, as they generate the majority jobs, about 1.8 million net new jobs annually, according to the Small Business Administration (SBA). The SBA defines small businesses as enterprises with less than 500 employees. In Los Angeles County, we need to break that number down further to really understand our local economy. In L.A County, 93 percent of all businesses have 20 or fewer employees and over 55 percent of those businesses are minority-owned. It is astounding that such a large economy is supported by small businesses.

I recently attended an opening of a Starbucks store in Watts. I joined local leaders and members of the Starbucks organization to commemorate a model of stewardship in the community. This example of entrepreneurship support, community investment and local hiring was not lost on me or others in the audience. I come across these examples all the time - major organizations making significant investments in communities in Los Angeles, empowering others to create jobs. Businesses are the innovators and job creators and they need the flexibility to keep creating jobs, good paying jobs that can support families in our community.

We've seen how small businesses have been disproportionately affected by the COVID-19 pandemic with over one million jobs lost in Los Angeles County alone. Hardest hit sectors are food services and hospitality, who work on notoriously thin profit margins and capital reserves. For some businesses, the silver lining is finding unique ways to pivot their business models, yet for others, permanent closure is unavoidable. The stress on businesses is deep, but the impact on families is profound. We need to foster those new models where business meets community, just like Starbucks. We are proud to see those examples everyday at the Chamber.

The Chamber has been advocating tirelessly for policies that will ensure jobs are protected or there is ample opportunity to create new jobs. By supporting Los Angeles businesses with sound public policy, we know that we are supporting job growth. And, we aim to understand the shifts in business, the outlook for economic recovery for industries and the role government as well as education can play in our community. We invite you to join the Chamber as we speak with industry leaders, educators and policy makers about our collective role to bring this economy back at our inaugural State of L.A. Business event on Wednesday, Oct. 14, 2020. While the pandemic has quite literally derailed 2020, it is through collaboration we will recover and return to a path of progress.

Click here to learn more about State of L.A. Business inaugural event.