In the Chicago shopping district, it’s starting to look a lot like Christmas. But the outlook for small retail and food businesses remains uncertain this holiday season amid supply chain issues, inflation and the shadow of the pandemic.
Still, as the third year of the COVID pandemic draws to a close, there are reasons to be optimistic about the outlook for small businesses in Chicago, said Isabel Velez-Diez, director of economic recovery for the Chicago Department of Business Affairs and Consumer Protection.
“Since the pandemic started, we’ve seen 4,700 new businesses get new licenses,” Velez-Diez said. “We’re also seeing the same percentage of license renewals as before the pandemic. So we’re very hopeful, optimistic that things are getting better, that things are slowly but surely getting back to normal.”
With this in mind, the city’s business-facing entities are moving from addressing short-term needs to long-term planning and activation.
“Now that things are starting to reopen, we’re going through a much more deliberate and impactful thought process through the funding that’s being allocated and the way that aid is being allocated,” Velez-Diez said. “We have a storefront activation program that will Storefront businesses bringing in vacant storefronts while revitalizing commercial corridors…we recommend visiting all of these spaces because it’s really great for small businesses and the community they come in.
Jackson Flores, secretary of the Pearson Chamber of Commerce, said the bumpy economic road of the past few years is now culminating in inflation across the board, making it difficult for small businesses.
“I think one of the things we’re seeing now is the cost of rent, utilities, payroll, it’s going to continue to go up, and we’re looking at different types of businesses that are creating different business models that have, since the pandemic, said Flores.
Businesses in Little Village are also having to weigh rising costs, Mike Moreno Jr. said. Or the Small Village Chamber of Commerce.
“If you see product costs going up, then a lot of people are going to be concerned about what is a necessity right now. So you’re going to see a lot of consumers holding onto their money a little bit more and probably buying it,” Moreno said. “The concern for us small businesses is how much higher inflation is going to go. We’ve seen a huge increase over the past year and a half.”
Many businesses have had to quickly keep pace with payments and social media marketing technology, Moreno said.
“A lot of small businesses don’t have the resources, or maybe sometimes don’t understand technology, but when it comes to understanding how to use social media as a form of marketing, especially, it helps a lot of these small businesses out there,” Moreno said. “We’re trying to motivate consumers who come in, whether they have a deal, or … trying to showcase something unique that might not be available elsewhere … even working on a website and having an online presence is huge for small businesses out there of. “
Carolina Juarez, business district manager for the Rogers Park Business Alliance, said that while access to capital is a hurdle for any business, Latino businesses also often have a learning curve to understand the U.S. banking system.
“I think the hardest thing is that businesses are even aware of what kind of help they need. A lot of times, we work with Latino businesses or just use cash,” Juarez said. “So with Grow/Progresando, our entrepreneurship training program, we’re able to support these businesses and help them along the way, starting with having a bank account, then maybe getting a line of credit, and then maybe trying to learn more about their credit score.”
RPBA The Grow/Progresando Entrepreneurship Training Center offers instruction in English and Spanish.
“It’s free to all Chicagoans. It’s a weekly meeting or boot camp where businesses or people interested in starting a business can come and learn what it’s like, what it means to start a business, and maintaining your What the business means, and maybe even expand things like getting funding, marketing, locations,” Juarez explained.
Such programs and outreach by the Chamber of Commerce and other community organizations are important information and educational conduits between business owners and the city, Flores said.
“If you go to the city’s website, can anyone easily decipher that jargon? I’d say absolutely not,” Flores said. “And I think that’s where grassroots organizations and a lot of nonprofits come into play because they break a lot of red tape, they make information accessible. I think at the end of the day, the city needs to work with organizations like this so they can continue listen to opinions.”
Community organizations can also help address the language gap among business owners in their area, Moreno said.
“There’s a lot of people living in the village, about 76,000 people. It’s the most densely populated neighborhood in the city of Chicago, but not everyone there speaks English,” Moreno said. “So it’s really important that we take those resources out and we’re actually going out to the community and reaching out to small businesses that might not be familiar with the resources that are available to them.”
A common mistake fledgling businesses make is not checking zoning regulations before signing a lease for a new storefront, Velez-Diez said.
“Sometimes business owners are so excited about starting a business that they might want to open in a place where there used to be a coffee shop, but that coffee shop might not follow all the rules of opening a coffee shop in that location,” Velez – The Considerations. “So make sure to go to our website and look at all the licensing zoning regulations to make sure they can do everything they want to do.”
City councilors and their staff are often the first city officials an aspiring business owner meets when starting a business. Juarez said it was also important for councilors to demonstrate continued support for small businesses in their districts by attending ribbon cuttings, tours and promotions on social media.
“Rogers Parker is very fortunate to have the government that we have. I think it’s important to keep the city councilors involved,” Juarez said. “It’s about staying current and making yourself known and helping entrepreneurs.”
Ultimately, though, Flores said, community members themselves can best help them by making a conscious decision to support their patronage.
“You move into a neighborhood because the rent is cheap, but then you move your business to a nearby big box store and you forget that the dollar can go farther [in the neighborhood]Flores said. “It’s not just goods and services, it’s moving through the local economy, it’s taxing back into the community, it’s shaping community identity. If you’re going to move into a neighborhood where you can afford rent, you’re going to get cheap Tacos, that’s awesome … but at the same time it’s the fabric of community. You need to take care of your neighbors. It’s an ecosystem.”