Rochester selected as one of six cities across the US for national small business initiative

ROCHESTER, Minn. (KTTC) – Rochester has been selected as one of six cities nationwide to participate in the Regulatory Justice Initiative: Expanding Access to Small Business Opportunity.

The program is led by the Mayors Innovation Project in partnership with Cities Work at the Institute for Justice, with the intent to make starting and growing small businesses easier.

The Rochester team includes Mayor Kim Norton, Community Development Director Irene Woodward, Collider Foundation Executive Director Amanda Leightner and Rochester Downtown Alliance Executive Director Shawn Fagan.

“Small businesses are a vital part of Rochester’s economy and identity,” Norton said. “We are honored to be part of this national effort to identify and remove unnecessary barriers that make it harder for entrepreneurs to launch and grow their ideas.”

The Rochester team will work with experts and other participating cities to analyze the city’s regulatory environment. Cities will receive recommendations and implementation plans to modify local regulations, the city of Rochester said.

“There are some very general things that would apply to a lot of people trying to start a business here in Rochester,” Leightner said. “One of those things would be addressing licensing, permitting, and zoning. Often, it can be a very confusing and very long process.”

According to Café Steam and Colorway Coffee Roasters co-owner William Forsman, the permitting process is one that he would like to see the city of Rochester improve.

“I think one of the biggest parts is increasing staffing on the part of the city to be able to accommodate for the increase in volume for permitting,” he said. “The process of having to submit something, waiting six to seven weeks and still paying rent or expenses on a space is incredibly burdensome and makes it very difficult for business owners.”

Especially with older buildings in downtown, Forsman explained there are various building code constraints that entrepreneurs need to be aware of. Coupled with waiting for and navigating through the permitting process, he said the expenses compound to potentially become unaffordable for new businesses to open.

Forsman said, “That upfront cost is astronomically higher than what they originally anticipated or budgeted for because of the increased time from the permitting process and just going through any of that regulatory red tape.”

Leightner shared small businesses are integral parts of every city—adding vibrancy and impact to the local communities. She said, “Small businesses are the sector of the economy that creates the most net new jobs. They are the ones who are driving innovation and driving local economies.”

The six cities selected for the program are:

• Hartford, Connecticut
• Honolulu, Hawaii
• Laredo, Texas
• Rochester, Minnesota
• San Bernardino, California
• Thornton, Colorado

The initiative will run through 2026. Results will be shared nationally to help other cities develop their small business programs. The city of Rochester confirmed there is no cost for it participate in this initiative.

Find stories like this and more, in our apps.