Why We Must Protect SMBs
Neighborhood small businesses are a large part of what gives a neighborhood its character. Consider the various neighborhoods in your favorite city. You may think of a seafood shop that sells the best scallops or the pocket-sized wine bar that plays boy band hits for sing-alongs. Or maybe it’s your favorite boutique selling exquisite Portuguese soaps, where you sniff a thousand escapist scents before you buy.
The places described are typically SMBs. While chain stores and restaurants can define neighborhoods — think central business districts of many cities which offer a sort of convenience or over-the-top appeal (Times Square, Mag Mile) — the character and individuality of a neighborhood comes largely from its physical location, the people who spend time there, the types of public spaces available congregating, and its small businesses. The exodus from Bleecker St in the West Village is one example of how SMB presence can change a neighborhood — Note: Urban planning legend, Robert Moses nemesis, and former Village resident Jane Jacobs is rolling in her grave. Bleecker St was still pretty, the architecture and quaintness resolute. Some longtime residents remained. But from the 70s to 90s, the energy changed from boho to swank when chains of conglomerate-owned luxury brands took over for the bookstores, antique shops and music venues. Bleecker St then became devoid of energy as those stores abandoned ship during the recession and blocks of storefronts sat empty for years, with approximately 40% of storefronts empty in 2017. It took a community-minded approach to revive it.
As we reawaken from quarantine, it’s critical that communities are deliberate about reinvigorating local SMB activity, attracting the types of businesses they want to define their neighborhood. SMBs hold a special place in communities, often founded by passionate local entrepreneurs who take pride in their craft and their place in the community. Owning a small business is still, for many, the ultimate American dream.
Just as local businesses define their neighborhoods, neighborhoods define their residents. When given a choice, people often choose which neighborhood to live in based on what is available there and the people who frequent those establishments. Residents and small businesses together create the energy and ethos to draw visitors and new residents into the community. The economic impact of the symbiosis between residents and SMBs is enmeshed in everything from property values and public space quality to SMB success. While many SMBs did not survive the last year, it’s time for financial institutions, communities, city councils, and others to fund and support resilient small business entrepreneurs to help revitalize neighborhoods and the economy.
