Eight out of ten small businesses fail within the first eighteen months, that is the cruel fate of many small businesses opening in Pennsylvania, let aloneAmerica. Small businesses are the the number one source of jobs in Pennsylvania, yet everyday people choose against them, they shop primarily at the big box stores and forget about the small businesses around them that got everything started. The people of North East Pennsylvania (NEPA) often tend to be closed minded to new ideas and long term benefits. Ever since the economic recession in 2008, small businesses have struggled to compete with the lower prices that large chain stores offer like, Wal-Mart and Target for example.
Small local businesses add a unique variety to the somewhat
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From 2008 to 2010 170,000 small businesses closed according to the data from Business Journals of U.S. Census Bureau. The employer and employees are the first effects when a small business closes. Unless there is another location, they are out of a job and now have to begin the search for a new one. Small business hold the largest number of employees in Pennsylvania, let alone the U.S., so if people continually avoid shopping at small businesses, then millions of people will be out of jobs in the future. The customers of that business are affected when small business close, they can obviously no longer shop at that location and have to shop somewhere else, also they will most likely loose the relationships with the employees and employer. The community will be affected. Business stimulates growth and development in a community, and when small business close, the community is stifled. Small business also have add a unique flare to the community and if all of the originality is removed from a community, then there will be nothing desirable left that the community has to offer, if there is nothing desirable that the community has to offer, people begin to leave. The closing of small business effects the distributors, especially the companies that supply products only to small business will suffer. Now they have lost their customers, the small business. My father has dealt with multiple distributors that have closed due to lack of business. Also, the local economy is affected, if business close in the area, the area becomes les and less appealing to the consumer and they leave. This cycle continues until the town eventually becomes
In order to gain the success it has had, Wal-Mart has no doubt affected small businesses. But in the place of small business Wal-Mart has been able to do far more for Americans than small businesses could. It provides consumers inexpensive necessities for life, it provides work for those who would otherwise have none, and it has a stake in the global economy that benefits our own with trading. Wal_mart
It seems as though these retailers should be welcome with open arms when they look into building one of their mega-stores in America’s mid-sized communities. Closer inspection, however, should make citizens think twice before opening their communities to these corporations. Job loss, negative impact on the local economy and the low wages these stores pay are just a few reasons why big box retailers do more harm than good to the communities in which they locate.
This resulted in additional stores going out of business.
The success of Wal-Mart is so great, that many people believe that Wal-Mart is becoming a monopsony . Suppliers are forced to deal with Wal-Mart because of the large percentage of sales at Wal-Mart cash registers. As such, Wal-Mart also has the ability to dictate prices of the goods it receives from the suppliers. Every day, more and more retail stores close their doors for good because Wal-Mart controls such a huge margin of the retail sector.
Managers in the more profitable regions were achieving/surpassing their sales goals, while managers in the less active regions were unable to achieve their sales goals. These underperforming managers were penalized by a system that they neither fostered nor developed. In all likelihood, the underperforming managers were disincentivized by unrealistic budgetary goals for their region, needing further assurances from corporate that their vision could be achieved. All retail stores suffered from a lack of product, destroying the potential sales that they could have gained. The stores in less popular/populated regions may have garnered a reputation for being unreliable and continually out of stock.
There is no question that chain stores have a detrimental effect on the measurable character and community of small towns. Not only are residents effected economically and collectively, but the character of the area is also threatened or compromised. In conclusion, we should all take a step back and see how we can give back to our community by leveling the playing field for local businesses. The first step in doing so is to realize the negative influences chain stores impose on small towns.
The stores usually raise there prices and then causes more shoplifting, but the people that don't shoplift just end up having to pay more for the product or else go somewhere else to shop. If the customer goes to a different store because of the rising prices the store will also lose business therefore could cause them to go out of business if enough customers leave.From ...
More than 95 percent of the stores to be closed in the USA are near another Wal-Mart, including all the Wisconsin locations. The company said the stores it plans to close are generally poor performers, and most are within 10 miles of another Walmart. Financial performance is just one of many factors the company took into account when deciding which stores to close. Of the 16,000 associates or employees to be affected, 10,000 will be in the United States. The company aims to place those associates in nearby
Walmart has some the worst business polices. It has been said that Walmart is the worst retailer in America. When Walmart moves into a town they usually drive out the small retail and food stores, in reality all Walmart’s presence does is little to boost the economy of the local communities. In a study done by the Los Angeles City Council in 2013, when Walmart moves into a community there is net loss. Retailers like Walmart has been estimated to cost another $9. Million in state health care costs and loss in benefits like retirement, and pensions. When this happens, this increases public assistance, has to step in and pick up the shortfall’s. (Ostendorf, 2015).
Shoplifters affect the Store Owner heavily. The number one reason for small, new business's to close is shoplifting. Approximately 10% of consumers enter a store and shoplift. It is very hard to run a store when 10% of your store is stolen from you.
Local business have been able to expand due to the massive amounts of tourists who come and sample local cuisine or check out local merchandise made by various natives
Growth in the small and medium business in Canada and other developed countries has been very significant. This sector of the business community now represents about 40 percent of GDP and accounts more than half of total employment. Today small businesses are more diverse and more vigorous than ever, but they also faces newer and more challenges or inhibitors to their growth than their older conter parts. This research will attempt to find the answer to the following hypothetical question:
So for the past six years or so, I've been working at a local hardware store in my area. I’ve done almost every job you can possibly think of their, doing everything from running the register, stocking shelves, ordering, to customer service. Nowadays, I take my share in managing the store and helping out with the day to day business operations at the store. We are a small business, and it sure takes a lot to keep small businesses afloat in today’s economy. There have been other stores in our general vicinity that have closed for numerous reasons, yet we have remained strong over the years. It takes a lot to keep a hardware store going, and it takes a good group of people to do so. Over the next few paragraphs I’m going to explain what it would take to open a hardware store in the grand old state of Massachusetts.
Small businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business.
Starting a small business is often one of the hardest things a person can do. Some people start a business out of pure fascination, or even as a hobby. Whether starting a business for personal reasons or simply the grandeur to make loads of money, everybody needs to have a plan. Starting a small business is no easy task and can take days if not months to prepare. The most important aspect to have is the tempura and heart to start a small business, as without passion, no business can succeed. One has to be his or her own boss, make dream, reality and be willing to market and sell a product. It takes a lot of discipline, long hours and hard work, something many do not have. However with the right willingness, passion and dedication a business can be the start of something big.