Leland, July 12, 2016 - Leelanau County business owners wax eloquent about the natural beauty of the peninsula, and its positive effects on the business climate. Yet, that beauty comes with a price. Rising property values are pricing their employees out of the area, resulting in severe labor shortages. So finds a survey conducted among county business owners, released today by the Leelanau Peninsula Economic Foundation (LPEF).
When asked in an open-ended fashion about the greatest advantages of owning a business in Leelanau County, 38% say that the area's natural beauty provides their greatest economic advantage. Another 27% point to tourism, 20% to a sense of community and "shop local" support, and 15% comment on the quality of life in Leelanau.
However, when asked about the greatest issues facing them in their business, several barriers to growth rise to the top. Fully 74% of county business owners say that the shortage of affordable workforce housing poses a significant barrier to their business' success. Another 44% say that a related issue, finding enough workers, is posing a significant barrier to success. Other constraints to business success include:
- Lack of childcare options for employees (37% say it is a significant barrier);
- Not enough short-term (overnight) accommodations in the County (33%);
- Not enough qualified employees (32%); and
- Lack of high-speed Internet (30%).
"Most of the crops in the county are good this year, creating a large demand for labor," says Jim Bardenhagen of Bardenhagen Farms, an LPEF board member. "Bardenhagen Farms, as well as other neighboring farms, are having a real challenge in finding workers for harvest this year. A local strawberry grower is short 10 people this year, causing them to leave some of their berry crop in the field. Not being able to harvest crops is devastating to the bottom line."
"We were having so much trouble finding domestic labor across all four businesses that we applied through the H2A program for the bulk of our agricultural needs, for fear of not being able to accomplish the work at hand," adds Sam Simpson, LPEF board member and co-owner of Good Harbor Vineyards, Aurora Cellars and Harbor Hill Fruit Farms. "It is not at a small cost, but has proven to be worth the peace of mind."
The survey also asked business owners about their charitable activities. Nearly all (94%) are engaged in at least one philanthropic activity, ranging from making financial contributions to charities (84%), providing in-kind goods or services to local non-profits (77%), and sponsoring local groups or events (74%) to making their facilities available to local groups (33%), giving a percentage of their revenue back to the community (32%) and allowing employees paid time to participate in volunteer activities (32%). Through these actions, Leelanau businesses show themselves to be playing an integral role in the health and vitality of local communities.
It is also worth noting that a significant number of county business owners - one in three (31%), in fact - own more than one business. On average, survey respondents have owned their business for nearly 22 years, and their business provides nearly two-thirds (64%) of their household income.
"The release of these survey findings is only the beginning," says Michael Collins, Foundation chairman and co-owner of Two Fish Gallery in Leland. "We expect to launch a series of conversations about the results and their implications - with local chamber boards, township boards, industry associations, and other community stakeholders. We want to be a convener of important, solutions-oriented conversations."
About LPEF:
The Leelanau Peninsula Economic Foundation is a non-profit economic development institute, and was launched last year by the Leelanau Peninsula Chamber of Commerce. It is governed by a board of directors representing communities, industries, and varied entrepreneurial expertise throughout the County. The Foundation's mission is to support the Leelanau business community by providing resources, programming and collaborative opportunities that will strengthen the economic vitality of Leelanau businesses and communities.
Methodology & Acknowledgements:
The survey was conducted online, from April 5 to May 8, among business owners in Leelanau County. Outreach was made through county chambers of commerce, industry associations, mass media, and social media. 132 respondents completed the survey, which was conducted for LPEF by the NorthSky Nonprofit Network. Financial support for the survey came from a grant from Rotary Charities, which was supplemented by financial contributions from Leelanau County community chambers of commerce.
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