It is often said that the backbone of the American economy is small business. And that is no more true than in Rhode Island.
Being small, though, does not mean being simple. For instance, as markets become more connected to the global economy, the challenge of competition reaches deeper into the local economy, challenging many more small businesses.
Longtime Ocean State companies such as Taco Inc., the maker of HVAC products, are expanding their product line to include heating and cooling products, and looking to export more. The change is not just about growth but rather survival. Diversified, yet interrelated, markets will keep the company healthy for years to come.
For a company like Taco, however, change is not just about adjusting the product mix to grow. It is family owned, and as such the company’s survival is linked to the family’s economic health (if not personal satisfaction).
And as challenging as growing new product and service lines is, making leadership transitions may be even more difficult.
Passing control of the family business to the next generation is not as simple as turning over the keys. Younger leadership may have new ideas, and convincing the family elders that change is needed can be a time-consuming, if not contentious, undertaking. But the best family-owned businesses in the region, such as Blount Fine Foods, have prospered by allowing the next generation of leaders to take bold steps to reinvent a mature and successful business into something much different, and much more successful.
Look at these companies and the others in this section as stand-ins for Rhode Island itself, as it tries to reinvigorate a tired state economy with new leadership. The lessons learned by the most successful small businesses may be just what the state needs to get itself back into a strong position.
Mark S. Murphy
Editor
