Small businesses nationwide continue to fail, owners giving up and closing

Dave Masko's picture

NORTH BEND, Ore. – People not are spending their money, we couldn’t find skilled workers and no matter how attractive we got with our web site and other online promotions, “it didn’t work for us and we’re going under,” explained Oregon coast business owner Gary; while the U.S. Department of Labor also presented more bad news, with a recent statement about “no signs so far of labor market recovery."

During a June 10 protest outside the popular “Pony Mall” in downtown North Bend, Oregon, other out of work small business owners joined Gary and -- exclaimed with huge signboards mounted on their cars and trucks -- “We’re Going Out of Business.” At the same time, the Associated Press noted more bad news this week for small businesses recently based on a survey of leading economists that reports how the U.S. economic recovery will continue to slide through 2012. Also, the AP reported that the weak economy and ongoing “recession” will continue to keep customers from spending money while former business owners -- such as Gary -- also noted how he and other business owners were hesitant to hire new workers in this struggling economy.

National Small Business Week 2011 went out with a whimper last month

Don’t tell Gary and other small business owners here in recession weary North Bend that the President proclaimed “National Small Business Week” last month (May 16 – 20) because they will “just laugh,” quips Gary at this annual event that recognizes the contributions of small businesses to the economic well-being of America.

In fact, the U.S. Small Business Administration stated that “in 2011, there are an estimated 27.2 million small businesses in the U.S.,” but since the recession, many are failing and shutting their doors such as the small business that Gary and his wife Jacqueline built back in the early 1970’s.

“We went through some hard times with our gift shop when it first opened, but there’s been nothing like this recession when it hit back in 2008. We were bleeding at both ends: we couldn’t pay our bills due to shoppers quitting us and we couldn’t find good workers,” Gary and Jacqueline explained while protesting for more government help outside a shopping mall June 9.

At the same time, the U.S. Small Business Administration notes that America’s small businesses “create 60-80 percent of new jobs in the country. Small business also drive innovation, create 21st century jobs and increase U.S. competitiveness.”

Every year since 1963, the President of the United States has proclaimed National Small Business Week to recognize the contributions of small businesses to the economic well-being of America. As part of National Small Business Week, the U.S. Small Business Administration recognizes this special impact made by outstanding entrepreneurs and small business owners.

In 2011, National Small Business Week will honor the estimated 27.2 million small businesses in America. Small businesses are major contributors to the strength of the American economy. More than half of Americans either own or work for a small business. They also create 60-80 percent of new jobs in the country. Small businesses drive innovation, create 21st century jobs and increase U.S. competitiveness.

Small businesses across the country are failing due to the lingering recession

According to a June 10 report on Portfolio.com, many small business owners nationwide – that are family owned and operated – are finding that the “overhead to run their business” is so overwhelming that they can no longer make a buck, and are simply giving up and closing down.

Moreover, the economic upheaval over the last few years has changed the face of small business, says Gary who’s spoken with “dozens of other small business owners in southern Oregon who say they’re throwing in the towel because the economic recovery is not happening” because shoppers are not buying products as they once did back before the recession hit in 2008.

Also, the latest consumer confidence index of sales across the board notes that Americans are hunkering down – due to a gallon of gas costing nearly $5 and food and beer continuing to rise – and simply not spending their money. Thus, small businesses are now moot due to no business.

“Look, you can watch all those financial analysts on the TV talk shows tell you all kinds of stuff, but I’m telling you now that we are in real trouble… this country is in real trouble because people are not spending their money, and that drives this economy,” Gary added.

Also, this former small business owner's views mirror the “Consumer Confidence Index” -- that also reported dwindling sales nationwide and across the board last month with June -- as not being better for America’s small business owners during the summer months.

Add new comment