Many people dream of having their own businesses. But how practical is it? What are some of the obstacles involved in opening and maintaining a business in America today?
According to a recent National Bureau of Economic Research report, immigrants are twice as likely to have their own businesses in America than those who grew up in the country. This generates $1 trillion in annual sales review. One possible explanation for this is that people that come from another country come with money and/or family loans.
Two of the US states popular for starting new businesses by immigrants are New Jersey and New York. These areas do tend to have more immigrants living there which could also be an explanation for this.
But what about the day-to-day operations of a business? How are small business owners faring in the New York area? According to Chhaya Community Development Corp. small business program manager Shrima Pandey, not great:
“We see property owners waiting on their vacant spaces to see how much they can get.”
With big businesses such as Amazon and Google setting up shop in New York, the smaller companies are suffering. There are many vacant storefronts now; these account for around 20 percent of retail boroughs like Brooklyn and Manhattan.
This is a big problem for employment generators. One thing leads to another. If storefronts are vacant, shoppers go somewhere else. Given that retail counts for approximately 357,000 jobs, unemployment figures could rise. As Real Estate Board of New York spokesman Jamie McShane said:
“The city’s retail universe isn’t shrinking. It’s expanding into new neighborhoods in Brooklyn and Queens with retail corridors that didn’t exist 10 years ago. Yes there are changes — part of a national phenomenon that has brought dislocation as people’s tastes and habits change.”
Rental price increases have not helped the matter. Between 2006 and 2016, Manhattan rents increased by a staggering 44 percent to $156 per square foot.