New York Small Businesses Struggle to Survive The Recession
By: Ijeoma Anyanwu
A store owner lays-off three workers, and extends store hours. A deli store owner struggles with paying bills in a timely manner. A restaurant owner increases price of food. Another store owner plans to move to a location that is less expensive.
Amid the recession, small businesses around the city are making changes to the way they do business to stay afloat. Three business owners describe their struggles to stay in business, and their hope for the recession to wither away.
Ibrahim Hassan, 33, the owner of MLB, an African video store on Sutphin Boulevard in Jamaica, Queens, came to the United States in 2001. He worked as a taxi cab driver for four years until he saved up enough money to open his business where he sells African movies, CDs and phone cards. His business was doing very well. However, in 2008, the recession took a toll on his business and as a result, sales dropped by 20 percent as customers cut back on DVD/ CD purchases.
“My business is suffering now that we are in a recession, and it’s worse now because there are three other people on this same block who sell the same thing I sell; so competition is high and this ultimately affects sales,” he added, “I am scared because I don’t know what I will do if I go out of business; my family here and in Africa depend on me. My wife does not work but she might have to start working in order to supplement our family income. As a matter of fact, I find it hard to sleep when I think of the drop in sales and the bills I have to pay,” Ibrahim said.
Mr. Hassan had to lay off the only employee he had, and now he works all by himself and even has to work seven days a week to make ends meet. Despite the financial hardship Mr. Hassan is going through, he is optimistic about the future. “Although sales have dropped, with Obama in office, I believe he will come up with a plan to help small business owners, and when that happens, I will be back on my feet. So, all I can do now is stay positive and hope for the best.”
Ms. Mary Chung, 54, the owner of Mona Hair at the Colosseum Mall in Jamaica, Queens and mother of two teenage daughters, has managed her business for 16 years. She is in a financial bind as sales have dropped significantly due to low demand for her hair products. According to Ms. Chung, business has been slow and if business does not improve within the next seven months, she fears her business might fold and thus lose everything she worked so hard to get. Amid the recession, the cost of hair products has increased; the cost to keep the lights on at the store has risen and due to a decline in sales, she says she had to lay-off three of her employees. “I wish I could keep everyone but I can’t my business is not doing so well.” Ms. Chung sells human hair that cost anywhere from $85 – $500. Some of her customers lost their job or work less hours and thus cannot afford to buy hair from her.
“I don’t know how long this recession will last but I am praying for a miracle, and I hope it happens soon.”
Sam Chowdhury, the owner of Elfin Café on 621 Lexington Ave on the corner of 25th Street, says he is looking for ways to cut down cost and increase profits without laying-off any of his employees. However, he says it’s becoming increasingly challenging to keep all his staff on board. He said he was doing very well before the recession; however, sales declined and the profit margin went down 40 percent. “I have been in business for eight years and was doing extremely well before the recession, but all that changed when other competitors moved into the neighborhood and drove down the prices of food. So I had to sell my food at competitive prices to keep the students coming back. Although I am paying a lot more for vegetables, fruits and electricity, I can’t raise my prices because if I do, the students will go to my competitors to get food and I cannot afford for that to happen.” Sam is concerned that he may have to lay-off at least two workers to make ends meet but is hopeful that business turns around sooner than later. Although Sam is struggling to make ends meet, he says “the economy looks better and is heading in the right direction.”