The Continue to Grow Austin's Economy by Investing in our Workforce, Education Systems, Entrepreneurs, and Local Businesses Priority Program seeks to ensure Austin’s continued economic health by developing a widely skilled workforce, recruiting new businesses, retaining and growing existing businesses, and tapping into our entrepreneurial spirit. In particular, this priority program seeks to increase job opportunities for Austin residents and increase small businesses and entrepreneurship.
Workforce, Small Business, and Education
Progress
The Challenge Studio
THE CHALLENGE STUDIO is an intensive 9-month program that forms and supports teams of entrepreneurs as they solve challenge areas outlined in the City’s Strategic Direction 2023 plan. For 2020, Challenge Studio seeks to establish businesses that address the challenge areas of Food Security and Nutrition and Environmental Quality.
Program Champion: Casey Smith
Departments: Economic Development, Planning and Zoning, Parks and Recreation, Austin Public Library, Human Resources, Austin Public Health
Small Business Classes Go Virtual
The realities of the COVID-19 pandemic impacted businesses significantly. In order to best serve the small business community, the Small Business Program developed online programming for critical resources and business coaching. These programs were offered at no cost to participants. The Small Business Program delivered 25 online classes since March 2020, serving 570 people.
New Financial Resources for Small Businesses
In April 2020, Austin City Council redirected nearly $6 million for short-term, low-interest loans for small businesses impacted by the COVID-19 pandemic. One month later, the City Council approved another $18 million for grants for small businesses, artists and musicians, non-profit organizations, and childcare centers. These grants helped retain Austin’s workforce and organizations amid the financial crisis caused by the COVID-19 pandemic.
Box Bazaar Small Business Incubation
The Box Bazaar is a temporary neighborhood installation that is activating city-owned land in East Austin by housing five business incubator spaces from small, local businesses in retrofitted shipping containers and by creating a vibrant neighborhood center with programming designed to benefit the surrounding community.
This City of Austin pilot project aims to bring citywide goals for complete communities, economic opportunity, and equity to life in a yearlong demonstration - the first of its kind in Austin. The Box Bazaar has been a joint effort between many City of Austin departments including Planning and Zoning, Public Works, Development Services, Economic Development, Austin Transportation Department, Building Services, and the Office of Innovation. The Planning and Zoning department's Imagine Austin implementation team heads the project.
Challenges
The Economic Development Department is leading the City’s effort to help our local small businesses rebuild and adapt to new economic realities following the COVID-19 pandemic.
Austin’s economy, workforce, education systems, entrepreneurs, and local businesses already faced many challenges that come with rapid and sustained growth and are now trying to cope with an economic tsunami caused by the halt to almost all sectors of the economy caused by the continuing pandemic, such as continued social distancing requirements, broken supply chains, layoffs, decreased buying power and local business closures.
Despite Austin’s recent economic successes up until the pandemic, the benefits have not been enjoyed equally or equitably throughout the community. Regional growth patterns and dynamic market forces create difficulties and add costs for residents and business, as well as the City, education systems, and others who serve the community.
Affordable housing also continues to be a concern for the workforce while commercial affordability has also become a common struggle. Sharp price increases for commercial space have created challenges felt most significantly among our more vulnerable small and local businesses. This priority program team and the City will continue to pursue clear priorities and solutions to keep up with the pace of growth and ensure paths to prosperity for all.