Previously, a 2024 report came out suggesting that a concerning number of small businesses had been struggling to make rent. It isn't only high rents that are a problem today for small business but crime is also a top issue for many cities and it's prompted a variety of business owners to reach out to government to see what they plan on doing about it as it impacts the ability of those businesses to function and for the community to be safe.
Making tough choices: relocation, raising prices, shutting down altogether
Retail theft has been one of the biggest issues and it might mean closing down or locking things up and customers don't like having to ask and wait for someone 15 different times when they go on a quick shopping trip to grab a few needed items.
The risks of doing nothing:
- higher costs from theft or damage faced by the business
- prices might increase to offset losses
- jobs might be lost when they close up
- options might be reduced for consumers in the region if stores close
- staff might face increased risks surrounding safety if crime isn't addressed
- insurance costs for the business can quickly skyrocket
- it might reduce investment interest in the area
overall might weaken the economy as businesses are driven out
It isn't a problem to be ignored and it doesn't look like it is being ignored to a large extent because there are officers who have been targeting and investigating these retail crime groups and others, trying to get on top of the problem. But they aren't the ones behind sentencing and all of their hard work trying to address the problem might go nowhere if the people doing the wrongful activities aren't going to be stopped further.
It's estimated that hundreds of thousands of small businesses closed on 2024 but it's difficult to get an exact number that might have been impacted. These small businesses are vital for job creation, innovation, competition, economic growth and upward mobility for individuals, among other benefits. What would help those businesses to thrive are things like reduced regulation, reduced fees, strong property rights, and especially any improvement on fiat currency issues relating to an inflationary monetary system.
posted for information purposes only.
https://www.forbes.com/advisor/business-insurance/impact-retail-theft-on-small-businesses/
https://www.newsweek.com/small-businesses-crisis-rising-numbers-unable-pay-rent-1895480
https://www.newsweek.com/small-businesses-crisis-rising-numbers-unable-pay-rent-1895480