Lawmakers hear business owners, advocates on capital, workforce and succession challenges facing Vermont small firms

Montpelier — Lawmakers from the Vermont House Commerce & Economic Development Committee and the Senate Economic development committee held a joint hearing on Jan. 29, 2025, to review the condition of the state’s small‑business sector and hear directly from business‑service providers and entrepreneurs about obstacles to growth and succession.

Presenters emphasized that most Vermont firms are very small, that access to capital and technical assistance is uneven, and that an aging owner population is creating an urgent need for more buyer-ready entrepreneurs. Panelists outlined a “capital continuum” and a separate “business‑assistance continuum” intended to map what types of financing and support are useful at different stages of a company’s life cycle.

Why it matters: Vermont’s private sector is dominated by micro and small firms whose needs differ from larger employers. The presenters said meeting those needs affects employment, household incomes and the state’s economic resilience, particularly in rural areas where access to vendors and technical specialists is limited.

Most firms are under 20 employees and many are microbusinesses. Presenters said there are “over 29,000 private‑sector firms” registered with the Secretary of State, and that roughly 27,204 (about 93 percent of those firms) have fewer than 20 employees; 21,687 of them have 0–4 employees. Panelists reported that Vermont’s small employers account for about 30.5 percent of employment and about $4.1 billion in wages statewide, while a very small share of firms (about 1.1 percent) with more than 100 employees account for a much larger share of jobs and wages.

Capital and financing gaps. Presenters described a broad range of financing types — grants, subordinated debt, royalty financing, convertible debt, equity and traditional bank loans — and stressed that businesses…