New Hampshire Small Business Owners Struggle in Uncertain Times

By Ugur Akinci, Ph.D.

New Hampshire is a state that relies heavily on small businesses for its well-being. One out of every 4 businesses employ 20 people or less. So when the small business owners start to sneeze, there is chance that the whole state may catch a cold.

Not only the latest sub-prime mortgage crisis but other factors like increasing fuel prices and medical expenses have also contributed to the recent downturn of fortunes on New Hampshire's proverbial Main Street. People seem to be more careful with their money and think twice before they make a purchase.

Small businesses in various New Hampshire cities polled by New Hampshire Union Leader newspaper mostly reported the same thing – times are rough and they are barely making it.

Ron Poirier,  co-owner of Bob & Sons Automotive on Manchester's West Side, said "we're just treading water waiting for the lifeboat to pick us up. We're expecting a lifeboat to come."

Jim Flowers, who owns a retail store in Manchester, felt better about his 15% increase in sales in December. But in January, his gross dipped by 50% and he expects February to bring in even less.

The Scrapbook Attic on the mall in Lebanon is reportedly going out of business at the end of this month (February 2008).

The number of going-out-of-business signs seems to have increased lately on Nashua's Main Street.  Absolutely New Hampshire, a made-in-New Hampshire gift shop, and Sugar Snaps, a high-end children's clothing store, are just two of them.

However, a number of new restaurant and stores have also sprung up in downtown Nashua recently.

A 21,000 sq ft development project planned for Goffstown by Brookfield Investment Group was put on hold when not enough commercial tenants showed interest.

All businesses are cyclical in nature. Given the traditional vitality of small businesses in New Hampshire and the consumer loyalty with which a lot of Granite State businesses have been awarded for decades in the past, those mom and pop stores that can weather this storm will again be glad they are doing business in New Hampshire.

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