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Small Business
Companies may see opportunity after hurricane
By Michelle Swafford / Staff Writer

Economic conditions for small-business owners remained strong in August, but Hurricane Katrina could put a damper on the situation, a national report released this week says.

The National Federation of Independent Business released its monthly study Tuesday and said small-business owners' optimism was virtually unchanged for August with 21 percent saying it was a good time to expand, 26 percent saying they expected higher sales and 17 percent planning to increase their number of employees.

The survey is a consensus of the NFIB's 600,000 small-business members across the country and was conducted prior to Hurricane Katrina's impact on Mississippi, Alabama and Louisiana.

"Katrina put a wrinkle in the outlook," NFIB Chief Economist William Dunkelberg said in a statement.

He said it is uncertain how much the hurricane would hinder energy production and shipping activity, which affects business activity.

Local small-business advocates and advisers say Hurricane Katrina was a horrible incident that would likely increase costs for businesses and consumers but also would create some business opportunities for small-business owners.

"It's going to affect all of us at some point -- businesses and individually," said Michael Graham, deputy state director of the Nevada Small Business Development Center. "You can't take that much out of our economy at one time and not have an impact. I think we can still be optimistic. I don't think it will be so destructive, (but) all of us will be paying a little bit more."

On the upside, companies that can supply goods to and help rebuild the depressed areas hit by the hurricane could profit, he said.

"There'll be needs for medical supplies and all the things that will have to be rebuilt," Graham said.

Louisiana and Mississippi officials are looking for minority and women small-business owners to help rebuild those states, which could create contract opportunities for Nevadans, Graham said.

If those business owners and skilled laborers relocate to the South, it could affect the Southern Nevada workforce, which is trying to keep up with the booming economy, he said.

The hurricane is not likely to destroy Nevada's economy, though.

"As far as Nevada goes, we still have a very strong economy and one that will continue to show signs of health," he said. "To what degree it will be stunted (by Hurricane Katrina) remains to be seen."

Horacio Lopez, the 40-year owner of Southern Nevada Courier Services and chairman of the local Hispanic Business Roundtable, said the hurricane damage creates lots of business opportunities for Nevadans.

"It's going to create a boom for the utilization of small businesses," he said. "Anybody that wants to move over there, they're going to be able to capitalize on that disaster."

Lopez said his transportation company that delivers small parcels for government agencies in Southern Nevada has not been affected by the hurricane.

Anna Siefert, operations manager of the Nevada Microenterprise Initiative, said she has not heard hurricane-related complaints from the small-business owners she advises, but she was personally affected by the South's shipping disruptions.

She said she ordered some blinds for her home from a small company and was told they should arrive within four weeks, but six weeks after her order she is still waiting.

"I won't get them until who knows when," she said. "Because of the hurricane they can't ship anything out. Everything is delayed."

In other small business news:

• Entrepreneurs looking for capital can strut their stuff next month in Reno and potentially capture investors' money.

The fifth annual Silver & Gold Venture Capital Conference will bring together 30 companies from various industries with national venture capitalists and angel investors. The featured speaker is Marianne Hudson, executive director of the Angel Capital Association and director of entrepreneurship at the Ewing Marion Kauffman Foundation in Kansas City, Mo.

The conference is being held at the Peppermill hotel in Reno and more information is available at www.goldencapital.net. Registration is $265.

• The Small Business Administration announced this week that it has partnered with Junior Achievement Worldwide to offer a Web site for teens who aspire to be entrepreneurs.

The Web site is available at mindyourownbiz.org and takes young entrepreneurs from brainstorming through business creation. The SBA also said it has revamped its own Web site for teens to make it more user friendly. It is available at www.sba.gov/teens.

Michelle Swafford covers health care and small business for In Business Las Vegas and its sister publication, the Las Vegas Sun. She can be reached by e-mail at swafford@lasvegassun.com or at (702) 259-2326.

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