Small Businesses Drive New England Growth: What the Boston Fed Heard in New Hampshire
Small businesses are central to New England's economy.
Research released by the Federal Reserve Bank of Boston in July helps show the scale of that role. In 2023, businesses with fewer than 500 employees employed more than 3.2 million people across New England, representing more than 47.5% of the region's workforce.
From 2000 through 2023, small businesses contributed 89.9% of New England's net job creation.
In August 2026, Boston Fed President and CEO Susan M. Collins visited Dover and Portsmouth. She met with business owners, lenders, economic development leaders, and others to hear what they were seeing in the economy. Boston Fed coverage of the visit also featured Strafford Economic Development Corporation (SEDC) Executive Director Dennis McCann speaking with Collins after a roundtable at the redeveloped Cocheco Mills site in Dover.
What New Hampshire Businesses Raised
Financing was part of the conversation, but it was not the only issue. Business owners and leaders also raised housing costs, difficulty hiring, access to resources, and the use of AI. Helen Leavitt, co-owner of Auspicious Brew in Dover, described the strain of keeping a small business moving when financial ratios can still make lending conversations difficult.
She put it plainly: "Someone's got to be willing to take the risk with us."
That concern does not mean every financing request should be approved. It does show why a lending roadblock can be part of a larger business challenge.
Business Readiness Still Matters
Another example from the Dover roundtable is just as useful. Daniel Gray, president of the Regional Economic Development Center, described a newer challenge at the Dover roundtable: applicants arriving with lengthy AI-generated business plans, sometimes running to 120 pages, without being able to explain the financial assumptions behind them. AI can be useful. But a polished document doesn’t replace an owner's understanding of the business. For owners seeking financing, being able to explain the numbers, the assumptions, and the plan still matters.
Businesses Do Not Experience Challenges One Program at a Time
This is where the Boston Fed visit connects directly to the work of Strafford Economic Development Corporation. Financing can overlap with hiring. Hiring can be affected by housing costs. A business may need capital, but it may also need stronger financial information, technical assistance, or a connection to a different resource.
SEDC's current services reflect that broader approach. SEDC provides direct lending and placement services with other finance sources. It helps businesses identify additional financing options and business connections. SEDC also provides funding for technical assistance resources to selected business owners and nonprofit directors. In practice, that means looking beyond whether a business fits a particular program. A more useful starting point can be understanding what is keeping the business from moving forward and what kind of support makes sense next.
That answer may be capital. It may be preparation. It may be technical assistance. It may be a connection to another resource. Small businesses account for a large share of New England employment and job creation. Those numbers show why the day-to-day problems facing small businesses matter to the region. The conversations in Dover and Portsmouth also show the value of listening closely to what owners are facing.
Stay Connected with SEDC
If your business is working through a financing challenge, exploring funding options, or trying to determine the right next step, SEDC can help you explore available financing and connect with business resources that may fit your needs.
Explore SEDC's Services or contact us today to start a conversation.
Sources and Further Reading
Federal Reserve Bank of Boston
Jay Lindsay, Small businesses tackle challenges in region that depends on them, August 24, 2026.
Read the Boston Fed article
Federal Reserve Bank of Boston, New England Public Policy Center
Nini Liu, Riley Sullivan, and Jeffrey P. Thompson, The Large Role Small Businesses Play in Employment in New England, July 8, 2026.
Read the research brief
Photo credit: Peter Davis/Federal Reserve Bank of Boston