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Can Small Businesses Weather Recession Better Than Large Chains?

January 26, 2009 RSS Feed Print

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We're hearing reports today that U.S. businesses are in the worst climate for demand in services and goods in 27 years. Are there any reasons for optimism left?

In today's economy, the only "glass-half-full" messages seem to be that things aren't always as bad as they seem. So here's one of those messages: When it comes to the worst business climate in 27 years, large chain stores might be bearing the brunt of the damage, instead of the small businesses.

A local TV station in Lincoln, Nebraska, reports how some small retailers have managed to increase their business while their chain-store competitors have closed.

"Men don't want to walk a half a mile into a mall to buy something as ordinary as a pair of shoes," said Kent Stadler, the owner of Kent's Men's Shoes at 200 North 66th Street in Lincoln. "They like to be able to drive up front, walk in the door, get their shoes and get going."

Stadler said it's his business ethic that is keeping his lights on.

"We just take care of business," Stadler said. "We try to do what we do and take care of the people that walk in the door. If you do that, whether you're selling coffee or appliances or shoes, you will do business."

Customer service seems to make the difference.

Of course, this is purely anecdotal evidence. I would not extrapolate any theme of "small businesses beating chain stores" based on this example.

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I AGREE SMALL BUSINESS OWNERS ARE THE TYPE PEOPLE WHO GIVE IT THEIR ALL AND GO ABOVE AND BEYOND THE CALL OF DUTY IN SERVING THEIR CUSTOMERS. AS MUCH AS LARGE BUSINESSES TALK ABOUT SAVING MONEY WITH THEM, THERE IS STILL SOMETHING TO BE SAID FOR SERVICE AND SHOWING THE CUSTOMER THAT YOU REALLY CARE. MY HUSBAND HAS OWNED A RETAIL SHOP IN A TOWN WITH AROUND 10,000 POPULATION AND WE SAW A PICK UP THIS PAST CHRISTMAS IN OUR WALK IN TRAFFIC AND PEOPLE COMING BACK FOR SPECIAL TREATMENT. I SAY IF YOU CAN TAKE THE HEAT KEEP ON PLUGGING IT DOES PAY OFF.

ANGIE of AL 2:47PM January 30, 2009

I am a senior citizen and remember when most of our stores and industry were run individually. Remember the Five and Dime store? It was in existence a very long time and served the public well, usually had a lunch counter within their premises, a very nice idea for the befuddled and tired consumer. Here they could sit down, have a cup of coffee and collect their thoughts to continue on shopping or maybe call it quits for now. That is a great calling card for the frenzied shopper.
There were Boutiques which catered to maybe just one particular thing, whatever it was it was inviting to the passerby as they did their window shopping.
There were Department Stores which usually had an array of items, and were neatly displayed in their front window, again all for the window shoppers delight.
Oone could stroll down the avenue and see many many one owner shops who's merchandise was just what the shopper looking for, no need to get caught up in Malls going around in circles and really never had the priviledge of talking to the proprietor about an item they were looking for.
You name a business and they were all or most of them one owner and the owner usually had a cheerful smile and a handshake to welcome the shopper, also to help them out anyway they could.
Too me Small Businesses are the best and the quality of their merchandise was better as well, for it was made right here at home, you knew what you were buying and there was a pride within to buy USA, remember?
Of course there were Specialty Shops for special things from overseas, that is where you found them, today most of our junk comes from overseas.
I could go on but I think you get my point.

Jackie of OR 11:31PM January 28, 2009

I think Ken Stadler hit the nail on the head, customer service makes the difference and that is one thing a small business can improve and control completely. In many of the large businesses that seemed to be the first department that was downsized with the downturn in the economy. Second, is advertising which is the second department that shouldn't have their budget cut. As many of us know first hand, you decrease advertising, you decrease sales and then it's only a matter of time before the doors are closed. We live in a world where it's easier to feel entitled, victimized or simply blame others on our troubles. I strongly believe the time has come for us to really, really take action and make changes in our life that improve the areas that aren't quite where we want them to be. Better health, finances, relationships, etc. We live in a world full of opportunity, we simply need to find it, take action and enjoy the life we've been giving.

Katy Stanton of AZ 1:48PM January 26, 2009