Along with jobs, Fort Meade growth brings traffic concerns

From the Baltimore Sun: Along with jobs, Fort Meade growth brings traffic concerns

Zoning and the Residential Business

Earlier in the month, Katherine Taylor posted to our blog an article from the Small Business Association (SBA) which highlighted some of the difficulties that residential – i.e. home based – businesses face. The SBA estimates that up to 50% of small businesses are run out of a person's home. With the increasing use of internet tools, such as video-conferencing and online faxing services, those with an entrepreneurial spirit can easily jump-start a company from their garage.  Additionally, with larger businesses employing furlough days and flex-time, traditional corporate work is being performed at home.

Having a home based businesses is not without it's challenges. Zoning laws for home based businesses are often very stringent. The SBA notes that zoning codes frequently prohibit signs, vehicles of certain classes, exterior improvements relating to the business, and outdoor storage. Additionally, zoning codes can limit the number of employees of a home based business and the number of visitors.

In Howard County, there are a few very specific zoning regulations (opens a .pdf) that a home based business should be aware of:

• The home-based business can't occupy more than 33% of the gross floor area of the dwelling OR 800 square feet, whichever is less;
• The business owner can't have clients visit in a detached garage;
• There can be no exterior evidence of the business;
• Only certain occupations are allowed to conduct home-based businesses.

While this is by no means a comprehensive list, it gives a general idea of the difficulties faced by a potential business owner seeking to establish their business out of their home. Some of the regulations are very sensible - let's face it, no one wants a semi-truck rolling up their street at three in the morning so the neighbor can get the latest shipment of widgets; however, in an economy that is not based on manufacturing but on intellectual products, home based businesses are likely to have little impact on the residential characteristics of the neighborhood.

For those looking to start a residential business, the SBA does have a great page on establishing a home based business.

Benefit Corporations, Benefit LLCs, and Marketing

In June, Maryland saw the creation of America's first benefit LLC, Clean Currents, a green energy company. Clean Currents was created under the recently passed SB 595, a follow up to the state's benefit corporation law passed last year. SB 595 was sponsored by State Senator Jamie B. Raskin (D-Mont).

Two weeks ago, Governor Martin O'Malley attended the inauguration of Blessed Coffee, a Takoma Park coffee shop. Blessed Coffee is a registered benefit corporation under the law passed last year. The company has pledged to allocate 50% of its net profits from wholesale revenue to social programs in Ethiopia's coffee growing regions, and 50% to community based organizations. O'Malley said of Blessed Coffee that “(i)t's a corporation that looks at not only the bottom line of profit, but also the bottom line of social responsibility.”

The Washington Post article, Takoma Park coffee firm holds 'Blessed' event, in quoting Raskin highlights one of the challenges the state has in encouraging benefit corporations:

“'The law allows community-minded companies to take the high bid,'    Raskin said.

The main benefit of the law, however, is as a branding and marketing tool. The community feels that it's a part of the business, and people are often willing to pay for products when they know the money goes toward groups and causes they support, Raskin said.” (sic)

Cause marketing can be effective. A 2010 study said that 41% of Americans have purchased a product in the past year because the product was associated with either a social or environmental cause. The same study said that 88% of Americans think it is acceptable for a company to involve a cause or issue in its marketing; contrast this to the Millenial Americans, of whom 94% think it is acceptable for a company to involve a cause or issue in its marketing. Additionally, Millenials use a company's support of social or environmental issues to determine other corporate interactions. 87% of Millenials use social and environmental causes as a benchmark to determine where to work. 79% of Millenials use the same benchmark to determine where to invest. As Millenials become more active participants in the marketplace, benefit corporations and benefit LLCs are poised to reap the benefits (pun intended).

Green jobs in Maryland

Last week, I read an interesting article in the Baltimore Sun entitled "Green jobs economy has hits and misses in Maryland". The article said that "(c)lean jobs locally grew 2.6 percent annually from 2003 through last year..." - a rate which is apparently indicative of an uneven pattern of growth for Maryland's green economy.

Maryland has made many efforts to stimulate the green economy. You may recall my blog a few weeks ago on the recent legislation pertaining to B Corps. Additionally, in 2009, Maryland created the non-profit Maryland Workforce Corporation to provide job training, which received a $4 million grant from the U.S. Department of Labor’s Employment and Training Administration to benefit it's Mid-Atlantic Regional Collaborative Green Consortium.  As part of the grant, Maryland Workforce Corporation has a website called MARC Regional Green Jobs, which provides a posting board for employers to list green jobs that are available.

MARC defines green jobs as "jobs involved in economic activities that help protect or restore the environment or conserve natural resources". These jobs deal with renewable energy, energy efficiency, greenhouse gas reduction, pollution reduction and cleanup, recycling and waste reduction, agricultural and natural resource conservation, and education, compliance, public awareness and training. These jobs are expected to provide direct and indirect green goods and services, specialized inputs, and the distribution of green goods.

If you have questions on how green jobs can benefit your business, please contact our office.