For quite a few years, small businesses have been the fastest growing segment of business. Not only were more small businesses popping up, but they were also successful. But now MANY small businesses are struggling just to stay open. Why?
Obviously, most would say that the bad economy is the culprit, and that is true, however, let's expand on that further. It should be noted that even though interest rates have dropped like rocks at the banks, many small businesses, who are renting spaces, have landlords who are increasing their monthly rent fees. How is that possible? Good question.
I have seen many businesses, who have closed or relocated further out where they can find more reasonable rent. Some have said that with these uncertain times that property owners fear their renters might fail, so they are charging higher rent to get what they can and make up for the terribly low interest at the banks. I have seen this to be true with businesses who own or are paying mortgages for their buildings...steady paying businesses are having their mortgage loan interest rates being increased. Why?
Of course, the cost of many things have increased -- gas, shipping, coffee, etc., which hits small businesses, who have already been hit hard for the past two years as is. Now with practically no interest on their small business accounts and being hit with increased rent/mortgages, there is no money left for expansion or adding employees! Small businesses need to get a break!!! Not be penalized!
What is the solution? Who can help? Feedback?
Robyn Crigger, CEO
Compass Career Mgmt. Solutions-OI Partners Inc.
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