WAYNE T. PRICE

Florida Today

Some of Darlene Heumann's friends and business associates thought she was nuts.

Opening a cafe in the midst of all this economic turmoil?

Heumann admits that, given the nation's current financial plight, she had a few anxious moments as she worked to start Hula Girl Cafe in Suntree.

But there never was any doubt about moving forward.

"I wouldn't have done it if I wasn't optimistic about the future," Heumann said.

These days, launching a business might seem akin to purchasing a ticket on the Titanic. At the best of times, fewer than 50 percent of small businesses survive four years. Nowadays, major, deep-pocketed retailers are cutting back plans for new stores and closing underperforming existing stores.

Unemployment in Brevard County stands at 7.2 percent, the highest reading in more than a decade, and customers are spending less.

But Heumann and others in new businesses say they're determined to plow forward, counting on hard work -- and yes, optimism -- to pull them through. They say they've already invested too much sweat and resources to get weak in the knees.

Rolling the dice? Maybe. But there are few other options, they say.

"It's very scary, but we're doing everything we can to contain costs," said Larry Burris, a partner with Spectra 360, a computer services company that opened about eight months ago in the historic Melbourne area.

Part of that approach means charging lower rates than competitors and paying with cash as often as possible, but that's not all by design.

"It's been very, very tight on getting credit," Burris said.

Bob Sirounis, owner and broker of Harbor City Business Brokers, said he understands why people who want to start new businesses won't give up without a fight. Many small businesses that opened in the last year did so on the premise that the economic problems were bottoming out.

"I don't think people knew the bottom was going to keep falling," he said. "I don't even think we're at the bottom yet."

The economic bailout package should create some stabilization by building a better climate for new businesses, but it's going to be tough -- particularly with credit -- for some time.

"You've got to hang in there," Sirounis said to business owners.

Heumann, a cookbook author, food consultant and now restaurateur, said her first week in operation two weeks ago was much busier than anticipated. She credits, in part, a menu with modest prices and large portions that take into account customers' desire for a good value.

Hula Girl's signature dish is a Kalua smoked pork dish for $7.25.

"The concept of what we have here kind of fits into the economy," she said. "If people can't afford to go to Hawaii, we bring it them. They come in and get their mind off of the economy."

Because the restaurant had been in the works for a long time, credit and financing weren't big issues for Heumann.

"Financially, we had been planning," she said.

Whether or not it's an ideal time to be opening a business, the economic climate has generated some benefits in retail space.

Burris said he got a great deal for Spectra 360.

Heumann said she has to believe the economy will improve. When it does, she will be well positioned.

"Everything is cyclical," Heumann said. "We wanted to go ahead and be established so that when the economy does rebound and people are really eating out, we're going to be prepared, we're going to be trained, we're going to be ready."

Contact Price at 242-3658 or wprice@floridatoday.com.

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Want to start a business?

To learn about loans and grants available from the Small Business Administration, visit www.sba.gov

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Fast facts

--- In 2007, there were 27.2 million businesses in the United States, according to Office of Advocacy estimates.

--- Census data show there were 6 million firms with employees and 20.4 million without employees in 2005.

--- Small firms with fewer than 500 employees represent 99.9 percent of the 27.2 million businesses (including both employers and non-employers), as the most recent data show there were slightly more than 17,000 large businesses in 2005.

--- The number of non-employer firms has risen steadily in this decade, from 16.5 million in 2000 to an estimated 21.1 million in 2007.

--- An estimated 637,100 new employer firms began operations in 2007, and 560,300 firms closed that year.

Source: Small Business Administration's Office of Advocacy estimates based on data from the U.S. Department of Commerce, Bureau of the Census and U.S. Dept. of Labor, Employment and Training Administration

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By the numbers

Small businesses make up:

50% of private- sector employees

45% of total U.S. private payroll

60% to 80% of net new jobs generated annually during the past decade

More than half of non-farm, private gross domestic product

40% of high-tech workers (scientists, engineers, computer workers, etc.)

Source: Small Business Administration's Office of Advocacy estimates based on data from the U.S. Department of Commerce, Bureau of the Census and U.S. Dept. of Labor, Employment and Training Administration