JOEL ON LOCAL ECONOMY
and SMALL BUSINESS

 
 

Overview
Starting a business in San Francisco can range from maddening to impossible. We must cut the red tape and roll out the red carpet to let every idea have a chance to be the one that saves our local economy.

City Hall needs to streamline the approval process for new businesses, waive fees, and reward entrepreneurs. We need public servants who will foster creativity and innovation.

That’s why Joel created a popular night market with community partners, bringing thousands to the Sunset to support local businesses and prove what’s possible for night markets citywide.

While small business is the backbone of San Francisco, we must also acknowledge we are home to a tech industry that drives a vital part of our economy. The arrival of AI companies offers opportunities and responsibilities. We must ensure a safety harness on AI so it cannot do harm.

Why are local businesses going extinct?
The owner of the St. Francis Fountain — the iconic ice cream parlor that’s been around for 100 years — told the San Francisco Chronicle that small businesses are facing an extinction level crisis. But the owner was not talking about the pandemic that decimated businesses citywide.

The extinction was happening long before the pandemic.

Consider this: the year before the pandemic hit, more than 500 restaurants closed in San Francisco. Why did 500 restaurants close when the economy was booming?

Because City Hall was killing small businesses with excessive fees, regulations and permits. There are more than 200 potential permits a small business might have to apply for to open a storefront.

Food trucks could have been the savior of restaurants that can’t use an indoor dining room during the pandemic. But it can take six months and 11 permits just to start a food truck. The Chronicle reported that San Francisco was one of the most difficult cities in the country to open a food truck. We need to rank as the easiest.

Nothing is easy. Even selling candy is hard. There are different permits for a candy store, a chocolate store or a corner store. Can the candy store sell chocolate? Can the corner store sell candy? Does the chocolate store only sell chocolate?

City Hall spends too much time and resources trying to figure out what a piece of candy is and what kind of store it can be sold in. This is absurd.

Consider the Ice Cream Bar in Cole Valley. It was an innovative idea that became a hit. But back in 2012, the concept of bourbon milkshakes short-circuited City Hall regulators. Was it an ice cream parlor? Was it a bar? It checked none of the boxes on existing forms. So instead of welcoming something new, City Hall responded with roadblocks. It took the owner two years of permitting hell and $200,000 to open. The saga was so incredible, it was featured in the New York Times. A decade later, City Hall’s hostility to small business had not improved.

The Chronicle reported that a young entrepreneur tried to open his new idea for an ice cream shop and “after spending $200,000 on rent, an architect, a lawyer, equipment and fees, he still has nothing to show for it and has given up on the idea.”

Most entrepreneurs don’t have the resources or resilience to survive running City Hall’s gauntlet, so we’re left to wonder how many creative ideas never happened that we would have loved.

Of course, regulation is necessary to keep residents and workers safe. But beyond that, we need to eliminate the roadblocks to good ideas.

ECONOMIC GROWTH ESSAYS