When Makers & Finders opened in the Las Vegas Arts District nearly a decade ago, the locally owned coffeehouse and restaurant was missing a key component—a walk-in refrigerator.
Nevertheless, with hard work and community support, the eatery eventually took off and has expanded to two other locations in the Las Vegas Valley, becoming a destination for locals and tourists alike.
“The fact that we were able to build our business in such a humble and grassroots effort, I think, says a lot about how we operate and why being an independent restaurant—there are obvious disadvantages, but I think there are many advantages by being independent,” said CEO Josh Molina.
Over 45% of Nevada businesses, not including restaurants, are independent and locally owned. According to a new study, however, the remainder—more than 54%—are retail chains.
Nevada ranks sixth in the country for its percentage of retail chains to independent businesses, based on a recent report from Merchant Machine. By comparison, New Hampshire took the list’s top spot with almost 63% of its businesses being retail chains, and Michigan was at the other end of the list, with about 73% of its businesses being independent.
Ryan Smith, director of Economic and Urban Development at the City of Las Vegas, said the number of retail chains to independent stores could be skewed simply because big brands are so abundant in casinos and resorts.
“Vegas is such an identifiable city that a lot of identifiable brands probably latch on to the notion of Vegas,” he said, noting that just one Strip property is likely home to dozens of chain retailers. “People from all over the world come here, and then they are familiar with a Starbucks or whatever these brands are.”
His department is dedicated to growing business, creating jobs and fostering success for Las Vegas locals, Smith said. While chains can provide residents with stable employment, he said, local businesses have a more unique understanding of the community’s needs.
Tina Quigley, president and CEO of the Las Vegas Global Economic Alliance, called economic development a “competitive sport.” Cities all work to attract businesses to diversify and grow the economy.
In Southern Nevada, the LVGEA is primarily working to connect with mid-size companies that bring high-skill, high-wage jobs.
She compared the local economy to a bucket, which is filled with money that swirls around as it’s transacted between businesses. Las Vegas has many holes in its bucket, however, where money used to purchase items not manufactured locally goes to their place of origin—whether that’s another U.S. city or an entirely different country.
“So you need businesses to keep filling up your bucket with outside money,” she said. “Money from somebody else’s economy needs to enter into all those transactions. So that’s why we’ve been really lucky to have … hospitality and gaming, because those people are bringing in truckloads of money from outside; from somebody else’s economy and dumping it into our bucket.”
But even hospitality and gaming have their limits, as proven by the economic impact of the COVID-19 pandemic and resulting shutdowns. Las Vegas must therefore attract “primary” companies beyond just those industries, Quigley said, if it’s going to continue to bring out-of-state money into its own bucket.
Chain stores, for the most part, are not primary businesses.
“They are a central part of an economy. You must have these retail chains—your grocery stores, your sandwich shops, your dry cleaners, etc.,” she said. “But they are just the money swirling in the bucket. They’re not a new source. They’re not a new spigot of money filling up the bucket.”
For Molina, running a successful business is all about embracing the independent identity, and understanding what sets local business apart.
Chain and corporate companies have more resources and funding, he admitted, but the latter have their own advantages—from creative freedom to opportunities for growth. “I think that’s a huge advantage,” he said. “Because where there may be a lot of red tape and checkboxes to check with a corporate company, you don’t have that with a small business.”