Problems of small retailers

Summary of Problems
Faced By Small Businesses

A healthy downtown should have a good mix of small retail businesses. However, these businesses are subject to many forces, many of them outside their control. The list below, prepared by Hyett-Palma, downtown consultants, illustrates the complexity of this problem. A good revitalization program should be based on a thorough understanding of these problems and include strategies to minimize their impact.

1. High rents squeeze out small businesses.
2. Market inadequate to support businesses.
3. Inadequate or poorly managed parking.
4. Crime.
5. Poor relations between property owners and tenants.
6. Inadequate capital to start new businesses.
7. Inadequate capital to expand existing businesses.
8. Inadequate capital to provide needed public improvements.
9. "Red-lining" by lenders.
10. Negative image of area.
11. Local government regulations inappropriate.
12. Design of buildings poor.
13. Large number of vacant buildings.
14. Large number of second story vacancies.
15. Poor marketing of commercial district.
16. Poor or outdated signage.
17. Poor merchandising.
18. Poor inventory control.
19. Poor internal management of businesses.
20. Little understanding of market by existing businesses.
21. Poor mix of retail businesses in district.
22. No financial feasibility analyses available for new, small businesses.
23. Inadequate organizational structure for small businesses to work together.
24. No political clout.
25. Inadequate numbers of skilled employees available to work in businesses in the district.
26. Inadequate facilities or sevices to retain employees.

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