In the Dayton, Hamilton, and Springfield areas, according to the National Bureau of Labor Statistics, average wages for service and retail jobs lag national averages. In 2025, job growth in the Dayton metropolitan area payrolls increased by about 0.4%, trailing Columbus and Cleveland. Hamilton at 0.3% and Springfield declined by two percent.
Despite their obvious job creation importance, small businesses face regulatory and cost pressures that fall more heavily on them than larger businesses. Permits, fees and compliance requirements that are manageable for corporations with extensive resources can pose serious challenges for locally owned operations.
In today’s economy, small businesses must not only compete against many big box stores but with Amazon. Changing consumer habits are part of the picture, but they are not the only factor. Before earning their first dollar, small business owners are forced to navigate zoning approvals, inspections and permitting requirements at the city, county and state levels. Delays from the government processes cause the small business to have additional rent, utilities and other fixed costs before being able to formally open.
For larger companies, these costs can be absorbed as routine overhead. For a small coffee shop or boutique in Dayton or Hamilton, they can significantly increase financial risk and discourage expansion or even entry into the market.
Locally, many of the larger businesses are given more incentives from Ohio through the Dayton Development Coalition along with other local government economic incentives.
Local government has taken steps to support entrepreneurship, such as Springfield’s business development programs, financing assistance and minority business certification efforts. Other cities throughout the region have created micro loans for businesses along with minority business certifications. The Entrepreneurs’ Center in Dayton is a prime example with their deep regional partnerships helping startups and small businesses throughout the Miami Valley. Those resources are helpful, but many entrepreneurs still report the permitting process remains time consuming, navigating the layers of government frustrating, and the atmosphere is difficult to predict and ultimately invest monies with confidence.
Fees add another layer of pressure. Licensing, renewal and inspection costs appear small at first, but collectively add up over time. For businesses operating on narrow margins, even incremental increases limits their ability to hire, invest or sustain slow periods in their business.
Regulatory requirements grow gradually. New rules added without a comprehensive review of how they interact with existing obligations on the business owner. This can result in small businesses finding themselves subject to costly administrative burdens and reporting standards identical to larger businesses requiring attorneys, accountants and more.
Local officials’ support of additional regulations often emphasize goals such as safety and fairness. However, when those requirements are applied uniformly without regard to business size or risk, the impact is not uniform. Unlike small businesses, larger companies can spread costs across multiple locations.
Local governments must take a deep dive on what is delaying and limiting small businesses in the region. The Miami Valley’s economic strength depends on the success of locally owned small businesses.
Rob Scott, a Republican, is the Kettering Clerk of Court, attorney, and small business owner. Contact him at rob@robscott.us.
