FULL TRANSCRIPT OF THE PODCAST

Today we’re diving into a topic that doesn’t get nearly enough attention in the nonprofit arts world—building meaningful partnerships with small businesses.

Too often, arts organizations look past small business owners, chasing instead after big corporate sponsors or national foundation grants. But here’s the truth: small businesses are our communities' backbone and prime candidates for arts partnerships that can be mutually beneficial and help enrich the local economy. These businesses bring local flavor, create jobs, and maintain a strong presence in the communities they serve. They are not just revenue generators but culture builders, problem solvers, and civic leaders.

Today, we’re going to lay it all out—why small business partnerships matter, how to cultivate them, and what obstacles to anticipate and overcome. We'll also dive deep into real-world solutions and practical examples to get you thinking about how your organization can tap into this underutilized network of potential partners.

Let’s get started.

WHY ARTS ORGANIZATIONS SHOULD PRIORITIZE SMALL BUSINESS PARTNERSHIPS

Arts organizations often direct their fundraising efforts toward large corporate sponsors and major donors, but in doing so, they overlook an incredibly valuable partner: small businesses. These businesses may not have deep pockets like Fortune 500 companies, but they have something just as important—a vested interest in their community. When arts organizations engage small businesses, they gain a partner that is invested in the local culture and economy.

As we get into this, let’s define, “small business.” According to the Small Business Association (SBA), a small business is generally defined as a corporation having more than 1 and fewer than 500 employees. There are currently over 6 million such companies in the U.S.

Small businesses act more like people than they act like corporations—because, at their core, they are people. The majority of small businesses are owned and operated by individuals who care deeply about their community, their employees, and their customers. Unlike large corporations that rely on distant executive teams to make sponsorship decisions, small business owners make personal choices about where to invest their resources. And when those choices align with the arts, everyone benefits.

Many arts organizations don’t think to engage small business owners, but they should. Here are five reasons why:

1. They Are Community Anchors
   Small businesses are deeply embedded in their communities. Unlike large corporations that may be headquartered elsewhere, local business owners live, work, and invest in the same neighborhoods where arts organizations operate. A partnership with them isn’t just a sponsorship—it’s a collaboration that strengthens the entire community.

2. They Need Brand Visibility and Differentiation
   Ever heard the phrase, “shop local?” There’s a reason for this! Small businesses are constantly competing for attention against big-box stores and online retailers. A strategic partnership with an arts organization gives them visibility in unique and engaging ways. Instead of just running another newspaper ad, they can align their brand with creativity, culture, and civic pride. This kind of association helps businesses position themselves as innovative and community-oriented.

3. They Have a Loyal Customer Base
   Local businesses thrive on repeat customers and strong relationships. When they endorse or sponsor an arts event, their customers take notice. That means arts organizations can tap into a built-in audience that already trusts the business, making engagement more natural and effective. This creates a marketing effect that extends beyond a one-time event, reinforcing brand trust and credibility.

4. They Seek Employee Retention and Appreciation Opportunities
   Many small businesses can’t afford lavish perks for employees, but they still want to reward and retain their teams. Group sales packages, employee discounts, or private arts experiences are great incentives for local businesses looking to boost morale and retention while supporting a community asset. Additionally, employee engagement in cultural events leads to increased productivity and job satisfaction.

5. They Are More Accessible Decision-Makers
   Unlike big corporations that require you to navigate layers of bureaucracy – with the final decision-maker living outside your market, small, local business owners are usually the ones making the decisions. That means sponsorship and partnership discussions can move faster, with fewer hoops to jump through and more flexibility in structuring deals. The ability to negotiate directly with the decision-maker increases the likelihood of closing a deal and developing long-term relationships.

BARRIERS & SOLUTIONS

Despite the many benefits of partnering with small businesses, arts organizations often face challenges in making these connections. Sometimes, small business owners aren’t sure how they fit into the arts landscape, or they assume sponsorships are too expensive. Understanding these barriers is the first step toward overcoming them and creating long-lasting partnerships.

Here are five common barriers and how to address them:

1. Perceived Cost

• Barrier: Small businesses fear sponsorship is expensive.

• Solution: Offer tiered sponsorship levels, showing that even modest contributions can have an impact. Create sponsorship packages with low-cost entry points and flexible benefits that make participation more feasible and attractive.

2. Lack of Awareness

• Barrier: Business owners don’t realize the benefits of arts partnerships and/or may not be aware of your organization.

• Solution: Provide case studies or testimonials from other small businesses that have benefited from working with you. Develop storytelling campaigns that highlight the success of past partnerships. Do you have any small business owners on your board? If so, they should consider sponsoring and encouraging their peer businesses to do the same.

3. Time Constraints

• Barrier: Business owners are too busy to engage.

• Solution: Make partnerships simple and low-lift, with clear expectations and minimal administrative work. Offer turnkey sponsorships that require little effort on their end.

4. Unclear ROI

• Barrier: Businesses aren’t sure they’ll see a return on investment, and every nickel is truly accounted for in their budget.

• Solution: Use data and audience insights to show how your arts patrons align with their target customers. Demonstrate past success and provide concrete ways their involvement will drive engagement and revenue.

5. Perceived Low Return for Arts Organizations

• Barrier: Many arts organizations believe it’s too much work to appeal to small businesses.

• Solution: Shift the mindset. Instead of seeing small business partnerships as a one-off transactional exchange, build scalable models that allow multiple small businesses to contribute at different levels. Develop bundled sponsorship packages, create affinity groups for business supporters, and automate processes where possible to reduce servicing costs.

THE NATIONAL CASE FOR SMALL BUSINESS-ARTS PARTNERSHIPS

To truly understand the impact of these partnerships, it helps to look at the bigger picture. National statistics reveal just how important small businesses are to both the economy and the arts sector. They are not just potential supporters—they are essential players in building vibrant, thriving communities.

If you need some hard numbers to make the case, here are three national statistics that highlight the value of small business support for the arts:

• According to Americans for the Arts, 67% of small businesses believe the arts attract and retain residents to their community, making their location more desirable.

• A report from the Small Business Administration found that small businesses contribute 44% of all economic activity in the U.S., demonstrating their financial influence and capacity for partnership.

• Data from the Business Committee for the Arts (BCA) shows that 79% of businesses that partner with the arts see it as an opportunity to engage customers and improve their brand perception.

So, let’s stop overlooking the small business sector. They are key players in our communities, and when arts organizations collaborate with them effectively, everyone benefits—the organization, the business, the consumers, and the community at large.

If you remember just one thing from this podcast, make it this…

Small businesses and arts organizations share the same goal—developing a thriving, engaged community. The more we work together, the stronger our local economies and cultural institutions become.