Doing Business in the
Seacoast of New Hampshire

by Joyce El Kouarti

"The Seacoast is an economic engine for the rest of New Hampshire," said Dan Gray, director of the Coastal Economic Development Corporation. "We've always had a diversity of businesses - retail, hospitality and pharmaceutical companies are currently very healthy and getting healthier."

The Seacoast is appealing to new companies for many reasons, but the area's outstanding quality of life is the one that always rises to the top of the list. The region offers easy access to beaches, tourist attractions along the coast, and outdoor recreational activities, while the city of Portsmouth offers dining, artistic and cultural opportunities, and a diverse nightlife comparable to that of a much larger city. 

Portsmouth's popularity is due in part to a tremendous creative economy that includes both retail and non-profit cultural tourism initiatives. The creation of publicly accessible art, and arts marketing and education efforts are supported and fostered by the city's Cultural Commission, which works to sustain and enhance the city's cultural community. 

Even Pease Tradeport, renowned for its transformation from military air base to corporate campus, features expanded services and cultural opportunities for visitors as well as those who work on site. "The Tradeport will offer a weekly concert series starting this summer, and Manchester Square at Pease now offers shops and a food court," said City of Portsmouth Community Development Manager Nancy Carmer.  

Such accessibility of cultural and recreational amenities is a magnet for businesses in the region. "Many companies have relocated here because the CEO happened to visit the area," said Marie Capello, director of the Rockingham Economic Development Corporation. "They'll come on vacation and say, 'That's a good place to bring my business.  I want to live there.'" 

The region's quality of life is particularly attractive to entrepreneurs. "There are a number of small companies in the Seacoast started by people who have worked within their industry for another company, then went off on their own to start a new business," said Dan Gray. "They came here for a reason. They found that it's not only a great place to live, but also a wonderful place to do business."  

The current businesses climate continues to improve.  The unemployment rate in the Seacoast was at 3.6 percent as of March 2005, lower than the state at 4.0 percent, the Northeast at 5.1 percent, and the country at 5.4 percent. 

The Seacoast is also experiencing steady improvement within the office real estate market, according to Grubb & Ellis|Coldstream Real Estate Advisors. As of spring 2005,
the overall business vacancy rate throughout the region was 11.1%, while the Portsmouth office submarket vacancy rate was 8.1%. Carmer described the trend as one of  "flight to quality." Seacoast business owners find they have access to markets, an outstanding quality of life, an educated workforce, physical infrastructure, research facilities at educational institutions, and IT capacity, she explained. Local companies frequently choose to remain in the area and upgrade their space, leaving their old locations to be filled by new arrivals. 

Many Seacoast businesses have started small and grown rapidly.  According to the results of a recent survey
conducted by the Small Business Development Center, 58 percent of New Hampshire's small businesses plan to add employees in 2005, and 43 percent plan to launch new products or services. Today, 90 percent of Portsmouth businesses have 50 employees or less. "That's great for business variety," said Carmer. "There's also great balance of activity between business, technology, education, tourism, even retail sectors on site. With such a mix, the region isn't reliant on just one large employer." 

Marie Capello agrees. "We have a diverse economy and a diverse region," she said. "We have a big tourism industry with hotels and restaurants as well as a manufacturing base that's expanding into research and development." She predicts future growth in healthcare and medical services. 

There's strong local support for new and growing businesses from established business groups, including the Rotary Club and the Greater Portsmouth Chamber of Commerce, as well as from individual Seacoast cities and towns. Carmer recommends that anyone who plans to start, expand, or relocate a business to the area begin by taking advantage of the free resources available. "It's a very business-friendly environment," she said. "But the most important thing is to have a plan."

For small start-up companies, the Portsmouth Microenterprise Assistance Program, the Small Business Administration, the Portsmouth Chamber's own Business Development Committee, the MicroCredit NH division of the New Hampshire Community Loan Fund, and the Service Corps of Retired Executives (SCORE) are invaluable sources of information and guidance. 

Many other educational and financial resources are available to help new and expanding organizations conduct business in the Seacoast.   The New Hampshire Department of Resources and Economic Development sponsors a variety of programs, as does the New Hampshire Industrial Research Center, the New Hampshire International Trade Resource Center, the Business Finance Authority, the State's Office of Energy and Planning, and the Rockingham Economic Development Corporation.  

The Seacoast is also home to numerous companies that offer critical business start-up services. For a list of permanent and temporary staffing, banking and accounting, internet, print, and other services, check the Directory located in the back of this magazine, or visit the Greater Portsmouth Chamber of Commerce's online membership directory at www.portsmouthchamber.org.

 "New businesses are always coming in, and businesses are expanding," said Marie Capello. "The Seacoast is a gem in the region."

Joyce El Kouarti is a local marketing communications consultant.