EFFINGHAM — The holidays are a busy time for small business owner Sara Ruholl, who was already gearing up for the season in October.
Her downtown Effingham shop, The Beanstalk Boutique, offers unique, personalized items that customers flock to for gift-giving. Ruholl notes what sets her business apart from other retailers.
“You can get it online, but you don’t know what you’re going to get. You can see it in person, touch and feel it. Everything is stitched or pressed locally here in this building,” said Ruholl, referring to the T-shirts and embroidery on clothing and apparel she offers. “We are a very niche business, and we are very different, and I don’t think that’s a really big thing where we are in the Midwest.”
Once a year, the day after Black Friday – Small Business Saturday – promotes community businesses and encourages people to shop locally. But for small businesses in Effingham County, that happens year-round, as proven in a recent study in which the county was ranked third among the best places in the state for small business owners.
To determine how attractive a region is for small business owners, SmartAsset compared the number of tax returns that report small business income and compared that to the total tax-filing population of the region. Next, it compared the total amount of small business income to the overall amount of income reported in each region and then measured the change in those variables over a five-year period.
The high ranking doesn’t surprise Ruholl, who feels there’s much support from the Effingham community, especially downtown.
“Our downtown is really beautiful, and it’s thriving. I think we’re definitely lucky to have all the support we have in our community. I’ve been to other downtowns, and they’re not as nice and welcoming as ours,” she said.
According to City of Effingham Economic Development Specialist Sasha Althoff, The Beanstalk Boutique is one example of the success of small businesses in Effingham, many of which have grown over time.
“John Boos started out as a tiny business,” she said of the world-renowned company. “It isn’t often you see any of our small businesses close. Even during COVID, we didn’t have any that really closed. When they close, it’s due to moving on and doing something else, not that it fails. We have an agency that always wants to know what stores have closed, and our close list is always tiny. It’s hard to think of them.”
Effingham Economic Development Director Todd Hull believes the success of small businesses can be attributed to the entrepreneurial spirit in Effingham that dates back to when the interstates were built.
“I think once the interstates came in, that was an impetus for additional small businesses to be created. Just as Effingham has grown, it’s provided more opportunity. There’s more people coming into the city, so there’s more need for those businesses and opportunities for those businesses,” he said.
The city has also helped foster small businesses through its Tax Increment Finance Rehabilitation program. Hull notes the program is a great way for small businesses to upgrade and maintain their buildings.
“It’s been a good program in the downtown,” he said, adding the area is vibrant.
Other incentives small businesses can take advantage of if they’re located in an Enterprise Zone is sales tax exemption on building materials and real estate tax abatement. Althoff said having both TIF and EZ programs makes the city unique.
“With a small business, just a little bit of help can go a long way for them. We feel these programs can make a big impact for them,” she said.
Effingham County’s Revolving Loan Fund program has also aided small businesses. Although the program is available for businesses of any size, Effingham County Board member Dave Campbell said the small loans are geared more toward small businesses. The loans charge 3% interest over five years.
Campbell isn’t surprised by the county’s statewide ranking, attributing it to the work ethic of residents, as well as location.
“I think it just shows Effingham County has a strong work ethic, and we’re a good solid economic county,” he said.
While small businesses thrive in Effingham County, Ruholl admits it doesn’t come easy.
“You definitely have to work at it,” she said. “I feel like there’s always new ones opening up. Seems like monthly there’s a new business or two opening up in Effingham.”
Ruholl said there is more than just local residents shopping at her boutique. Many customers come from Mattoon, Charleston, and even Indiana.
“They’ll come here just to shop in our downtown because it is unique and thriving,” she said.
Ruholl believes the success of small businesses extends beyond customer support to businesses supporting each other. Ruholl’s boutique embroiders uniforms for local businesses, including Probst Refrigeration next door.
“Instead of them going to the big places, they’re coming to us to embroider locally,” she said. “For that small business to support us, it’s cool to see it come full circle.”