This content is sponsored by the Greater Washington Board of Trade.
Inflation.
Rising material costs.
Federal government cutbacks.
A lack of skilled workers.
You name it.
Small business owners in the nation’s capital area are facing a long list of challenges right now.
“In our region, small businesses are facing some headwinds out there,” said Jack McDougle, president and CEO of the Greater Washington Board of Trade.
Inflation is weighing down businesses around the nation’s capital as they pay more for materials, fuel and labor.
“It’s a huge problem,” he said. “It’s a problem for every business. You know, it’s a problem for consumers. It’s a problem for businesses. It’s especially acute for smaller businesses.”
McDougle’s organization is on the frontlines, helping local entrepreneurs grapple with all these challenges.
“You don’t have to go it alone,” he said.
He recommends you join your local chamber of commerce, economic development authority or the Greater Washington Board of Trade, “because there’s a lot of people out there that are going through the same thing, and the quicker you can share lessons learned, and you can figure out best practices, and you can apply those and move forward, that really does help.”
Connecting with other small businesses, he said, will help as the region moves away from its dependence on Uncle Sam.
“You know, we have the ongoing transition of the federal government, which is causing some uncertainties,” he said. “We also have just the overall economic conditions in the region, and then also real importance is disruptive technologies and what’s going on, particularly with AI.”
McDougle recommends small businesses embrace artificial intelligence. Not doing so could have consequences.
“You will make mistakes,” he said, “but the bigger mistake would be not using it and not figuring out how to adapt it for whatever your business is.”
When small businesses are having a hard time recruiting workers, they should consider AI to level the playing field.
“You don’t have a marketing department,” he said. “You don’t have a sales department. But now, all of a sudden, you have tools that really help you operate. And perform at a much higher level, so that can create some competitive advantages for you. So yeah, it’s definitely worth getting out in front of that.”
McDougle also said small business owners should treat artificial intelligence like any other tool.
“It’s like your accounting system,” he said. “It’s like anything else that you use. So as long as you’re thinking about it as a tool to help you do business better, to help your employees be more effective, both efficient and productive. Viewing it that way, I think then it can have some real advantages for you. But it’s not going to solve all the problems, at least not yet.”
“Just don’t forget the bigger picture,” he said. Small businesses around Washington still need living and breathing humans.
“I mean AI is amazing, and it’s going to create a lot of changes,” he said, “but AI without people, we’re not there yet, and I don’t see us getting there anytime soon. So, you want to really invest in your people.”
Overall, despite all the challenges right now, McDougle prefers to stay positive.
“There’s some warning signs out there,” he said. “But it also depends on the industry. If you’re a tech startup, you’re probably doing a lot better than if you’re a small restaurant.”
He says Greater Washington still has a lot to offer small businesses, as the area transitions away from overreliance on the federal government.
“In spite of the fact that we are going through a pretty bumpy period,” he said, “there is a lot to be optimistic about.”
Learn more about how the Greater Washington Board of Trade is working to advance the region’s economic future and strengthen its vibrant communities at www.boardoftrade.org.
To discover more insights for entrepreneurs, startups and SMBs shared during WTOP’s Small Business September, click here.
