Director's Message

Failure is Not an Option

Small businesses are recognized as the engine of the world economy. They are praised for adding substantially to every country’s bottom line, spurring employment, and creating a space for innovation. However, the survival rate of small businesses in their first 10 years of operation is not very high. The Small Business Administration (SBA) reports that only “about one in three small businesses get to the 10-year mark.” So why would you even try if failure is a possible outcome and statistics are stacked against you?

You try, because the idea of independence, or the chance to be your own boss, is a major motivator. You try, because of the strengths and expertise you bring. You try, because you want to build something sustainable for your family. You try, because like our crews out in the field, working under difficult conditions to restore service during a heatwave, failure is not an option.

The small business sector is one of the most important sectors of our nation’s economy and that’s especially true for Los Angeles. Businesses continue to grow year after year despite the increase in the size, number, and influence of large multinational corporations. Small businesses are also the largest generator of jobs and the best innovators. Your business provides not only a job for you, but also for others in your community.

The benefits small businesses provide include:

• Satisfying new needs in the marketplace
• Filling gaps for needed goods and services that are ignored by large corporations
• Raising efficiency in the marketplace by increasing competition
• Improving customer service
• Bringing innovation and pushing others to think differently
• Flexibility and capacity to make changes

Even with all the benefits that small businesses bring, a major problem faced by small businesses, is their high rate of failure. That is why government agencies like LADWP institute special programs and incentives to provide small and local businesses with assistance in order to improve their competitive standing in today’s complex and dynamic economy. LADWP gives preference points to certified businesses located in LA County on bids and proposals to encourage businesses to stay and open in the County. Also, for contracts over $150,000, LADWP is looking at each and every procurement to identify work for small and disabled veteran owned businesses to partner with larger firms to expand their experience and fuel their growth. Lastly, education and outreach to try and eliminate barriers for small businesses are always LADWP’s priority.

We understand the importance small businesses bring to LADWP and to the City of Los Angeles and we want to see these businesses not only survive, but also flourish and grow. So, get certified and ask questions and someday, I look forward to celebrating your 11th year in business.