However, with the exception of 2010, the number of new licenses had been fewer than 600 since 2007, leading to a steady decline that matched the national recession until a surge two years ago.
“It’s all about the economy and small businesses just simply not looking to take the risk as a result of the economy,” Reynolds said. “But if you look at our infrastructure that we’re continuing to focus on and put in place out in the eastern side of the county, in the Liberty Twp., West Chester and Fairfield area, if you look at the investment that the county continues to make, we’re poised for a significant increase in the total number of vendors once the economy turns around.”
Warren County also saw a drop in new licenses, from 440 in 2010 to 428 in 2011. In 2005, the county issued 547.
But the Warren County Auditor’s Office points out total sales-tax revenue in the county has been on the increase since 2009.
Butler County also has seen an increase in sales-tax revenue, from $29.7 million in 2009 to $30.5 million in 2011.
“We’re definitely seeing a recovery in our sales-tax revenue,” Reynolds said.
Vanessa and Chris Cannon weren’t frightened off by the sluggish economy. The couple opened True West Coffee on Main Street in Hamilton on Dec. 12.
“We saw it as an opportunity in a down economy,” said Chris Cannon, who has eight employees at the shop. “It’s been great. We’ve had steady customers, a lot of repeat customers.”
The number of entities filing to do business in Ohio grew to 82,601 last year, up from 80,081 the previous year, according to Ohio Secretary of State Jon Husted.
“When it comes to the number of new businesses choosing to operate in Ohio, our state is heading in the right direction,” Husted said in a prepared statement. “We hope for an even more prosperous year for Ohio in 2012.”
Any person or company making taxable sales in Ohio is required to have a vendor’s license, and retail vendor licenses are required for businesses with a fixed place of business, said Gary Gudmundson, spokesman for the Ohio Department of Taxation. Retail licenses are sold by county auditors and online by the state.
Although the failure rate of new start-ups is high, creating a new business in a down economy has its advantages, such as less competition and cheaper infrastructure costs, said Earl Gregorich, the director of the Small Business Development Center at Wright State University.
“If you wanted to open a storefront, you’d have your pick of locations at a very reasonable cost,” he said.
Seth Spicer said he had plenty of options for a location when he opened Seskey Computers in August at a strip mall on Cincinnati-Dayton Road in the southeast corner of Middletown.
“We realized there was a lot of traffic on that road, and it was a nice area to move into,” Spicer said.
Business has been so strong that the store plans to expand in the summer.
Gregorich said it obviously is much easier to obtain a vendor’s license than it is to open and operate a successful business, and many new start-ups will not survive. But he said license growth has positive and negative qualities.
“I am in the business of putting people in business,” he said. “But from the standpoint of a business counselor who is also an entrepreneur myself, I consider my day just as successful if I keep a person out of business who shouldn’t be.”
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