Vermont SMBs seek increased entrepreneurship but tough times for 'mom and pop' stores

What is hardship for some may be opportunity for others, as seen in the increase in entrepreneurial activity often found during recessions. This motto seems to hold true in Vermont, whose small-town stores have seen both the silver lining and the ugly underbelly of the recession.

On the one hand, the decrease in consumer purchasing power and consequent decrease in tourism has affected many Vermont small businesses, whose bottom lines have been severely impacted.

These changing consumer habits as well as larger competition have particularly affected the "mom and pop" grocery stores of Vermont, according to Jim Harrison, president of the Vermont Grocers Association, who told the Rutland Herald that this has been an ongoing trend that has steepened during the recession.

On the other hand, many Vermont small business owners have found that when life gives them lemons, they can open lemonade stands.

The Bennington Economic and Community Development told the news provider that loan applications have doubled this year, as many small business owners are taking the opportunity to pursue their entrepreneurial visions.

In addition, Vermont's small-town feel may guard against the impact of tightened credit, as local banks are more likely to know the person seeking a small business loan.

According to recent research by the Ewing Marion Kauffman Foundation, there may be more entrepreneurial activity than usual during difficult economic times; 57 percent of companies on the 2009 Fortune 500 list were founded during a recession or bear market, the study found.