U.S.A. Latin Chamber of Commerce

New York City Hispanic Small Business Survey

 

Final results: 937 Latino owned NYC small businesses: professional (attorneys, accountants, medical clinics etc.) & mom and pop retail:

(shoe repair, hardware, restaurants, cloths, etc.)

40 surveyors over 2 months period, mid Nov., 2008  –mid Jan. 2009

 

1.   Is this business Hispanic owned?   100% Yes  X____No

2.   How many years have you been in business at your present location?  8 years

3.   What is the number of your employees (include family and part-time workers)?  8

4.   Would you classify your business as:

_33% a. Professional in nature (accountant, doctor, travel agency) or _67% b. Retail (bodega, grocery, clothing etc.)

5.   Is your business currently at risk of closing (not due to retirement or health issues)?

53%Yes          30% No     17% Unsure

 

If yes, Please select most likely reason or reasons (You can check more than one but if you choose two or more, list number in order of priority.) Number one answer D. 74% rents to high , second a. 66% operating cost to high c. k. 64% Taxes and fees to high 

a.   66% Increased operating costs for SB in NY, including insurance-energy-labor-accounting, advertising, etc.

b.   45% Downturn in the economy.

c.   18% Unable to compete with larger franchise stores.  

d.   74% Higher Rents & unreasonable lease terms.

e.   12% Change in neighborhood resulted in lower demand for your products or services.

f.    9% _High labor costs or lack of skilled labor.

g.   7%   Unable to gain adequate capital to expand or make capital improvements to remain competitive.

h.   15% Negative change in quality-of-life in the community (Crime, etc.).

i.    43% Unable to make enough profit due to competition from other businesses.

j.    6%   Unable to keep up with new technology necessary to remain competitive.

k.   64%Taxes and fees to high.

 

6.   Have you been forced to lay-off workers, or currently have plans to?

69% Yes      31% No       

7.   Have you been forced to cut back some workers to part-time, or currently have plans to?

    72% Yes      28% No  

   

 If yes, to either 6 or 7, Please select the most likely reason or reasons (please number in order of priority with 1 being the highest)    Number one reason 1. D. 73% high rents  2. A. 67% increased cost of doing business in NY

3. B. 65% Taxes and fees to high

 

a.   67%  Increased costs for doing business in NY, including insurance-accounting-energy-advertising etc.

b.   59%  Downturn in economy. 

c.   17%  Unable to compete with larger franchise stores.

d.   73% Higher Rents and unreasonable lease terms.

e.   19%  Change in neighborhood resulted in lower demand for products or services.

f.    28%  High labor costs or lack of skilled labor.

g.   7%__ Unable to gain adequate capital to expand or make capital improvements to remain competitive.

h.   8%__Negative change in quality-of-life in the community.

i.    27%   Unable to make enough profit due to competition from other businesses.

j.    6%_  Unable to keep up with new technology necessary to remain competitive.

k.   65%   Taxes and fees to high.

 

8.   Do you currently have any plans to expand your business or make major capital improvements?

Yes 14%    No 86%

 

9.   Do you currently have plans to expand your number of employees?

Yes 8%    No 92%

 

 If No, select the reason or reasons (please number in order of priority with 1 being the highest)

Number one answer 1. f. 68% no protection for future rents/leases 2.   E. 61% Predict continuing rise in costs

3. A. 55% struggling to survive

a.   55% Struggling to survive in business today.

b.   7% Lack of access to reasonable cost of capital/loans for expansion and capital improvements. 

c.   26%Predict long-term decline in my business

d.   52%Predict poor economy for NYC in future 

e.   61%Predict continuing rise in already high costs of doing business in NYC.

f.    68% No protection of business during lease renewal period, including lack of offer of new lease or rent increase.

g.   43%_Predict continuing anti-SB environment in NYC, resulting in “too great of risk to take” in planning for the future.

h.   9%  _Predict too much competition from big stores to gamble on future.

i.    37%_Predict too great an increase in Taxes and fees.

 

10. Are you a first or second-generation immigrant who started a new business for the opportunities NYC offered?

Yes 63%  No 37%   If yes, did you believe NYC was the best city in America to work hard to achieve your American Dream by being successful in your SB?  Yes 91%  No  9%

 

11. If you selected “Yes” to Question 10, do you still believe NYC is the best city in American for an immigrant to invest      their savings and hard work in starting a SB to achieve the American Dream? Yes 16%  No 84%

 

12. If you chose “No” to Question 11, select the reason or reasons why, and if you select more than one, prioritize them.

Number one answer: E. 73% out of control rents  2. A . 67% high operating costs 3. H. 65% taxes to high

 

a.   67% Operating costs have become to high 

b.   23%_Too much competition for larger stores  

c.   7%   Changing neighborhood – old customers mover out , new ones want different services

d.   46% Predict a down economy for long time 

e.   73%Out-of-control rents/unreasonable landlords

f.    _8% Cost of loans/Capital to high

g.   _26%Government policy favors big business over SB resulting in anti SB environment.

h.     65%Taxes and fees to high

i.    _16% Unable to get good/skilled workforce

j.    _9%  Decline in quality-of-life (crime)

 

13. Would your recommend to your family, friends, or people from your home country to start a business in America?

               Yes 18%   No 82%        If yes, which city? Philly No. 1  or what part of the Country? Northeast no 1

 

14. Do you feel the people in NYC government who are responsible to recommend economic policy understand small businesses?  Yes  12%      No  88%

 

15. At any time during the commercial lease renewal process, has the landlord or acting agent demanded from you money

as a condition to continue or begin the negotiation of your lease renewal?  Yes  31%  No 69%

 

16. Have you had any direct negative experiences during the lease renewal process, where you felt the “unregulated Lease renewal process” so favored the landlord that the landlord was abusing this “right” in the lease renewal process?

Yes 92%  No 8%

 

17. From your experience with lease renewals, do you feel you have no rights during the lease renewal process?

Yes 87%  No 13%   If  Yes,  Does this influence your business decisions to expand (yes 91% or no 9%)

 or make capital improvements ( yes 73% or no 27% ) , sell your business  ( yes 86% or no 14%),  lay off workers

( yes 77% or no23% )  or close your business  ( yes 93%  or no 7%)?  Circle answers