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Nov 13, 2009 -

BEND - If small business owners are indeed the backbone of the U.S. economy, then consider the Sparrow Bakery the spinal column of success in Central Oregon.

“We’ve been working hard for three years to mean something to the community,” said Whitney Blackman, a co-owner of the small bakery and coffee shop on Bend’s west side. “It’s not just about making money to us. We want to be something the community participates in. We want to be involved in our customer’s lives.”

As many restaurants, factories and retails stores continue to lay off employees or simply shut down operations, a variety of small businesses in Bend are progressing through the economic downturn.

“We’re not a chain,” Blackman said. “We don’t take the Starbucks approach of customer service. It’s not come in , go out and then asking, ‘who’s next in line?’”

According to a recent study commissioned by the Guardian Life Small Business Research Institute, during the next 12 to 24 months small business owners will emerge from the recession strong and well positioned for growth during the next decade, leading the U.S. to economic recovery. There are three specific reasons why small businesses will succeed: their customers, their employees and their own self dependence, according to the report.

Scott McLean, the owner of Bend’s Riverside Market, said his business has been steadily growing every year since he and his wife Patty took over operations in March 2006.

“It is a market and we do serve food, sure,” he said. “But we also think of it almost as a community center. It’s a place for people to drop in or stay and talk about the events of daily life.”

Not only is the Riverside Market having success through the recession, the business continues to expand. Within the last 18 months the market has added an extensive food line, including home cooked-style meals twice a week. The McLeans have added tap beer to their business, serve daily breakfasts and now offer a small dining area and outdoor seating for their customers.

“We really haven’t done too much advertising,” McLean said. “We’ve found that word-of-mouth is the most effective tool.”

Both the Sparrow Bakery and Riverside Market employee about ten people, with those numbers fluctuating slightly based on the season.

“Labor is our number one cost,” Blackman said. “So we have to be responsive to that.”

Each business is about the size of school classroom. Local artwork hangs on the walls. Most often music is playing during business hours at each establishment, with tunes from the likes of Bob Dylan accompanying customers during their morning cup of coffee or afternoon pint of ale.

“We’re comfortable when we’re here,” McLean said. “And we try to share that.”

The owners of the Sparrow Bakery and Riverside Market both admit profits from their respective businesses will not make them rich anytime soon. However, profits are there to be had, and both McLean and Blackman stated customer satisfaction and owning a healthy business are equally as important.

The Sparrow has recently opened a second location, serving primarily as the baking headquarters for the business.  Family loans got the dough rolling for the bakery, and Blackman said she and her business partner are hoping to get a line of credit from a bank at some point in the future. The same can be said for Riverside Market, as the McLeans plan to continue expanding the business while maintaining a strong local feel.

“It’s not to say we didn’t feel the impact of the poor economy,” McLean said,” because we did. But we think our regular clientele and openness to the community are why we’re continuing to be successful.”