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	<title>Doing Business Now &#187; community</title>
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		<title>When pinching pennies doesn&#8217;t help</title>
		<link>http://www.biz2credit.com/blog/2009/02/16/when-pinching-pennies-doesn%e2%80%99t-help/</link>
		<comments>http://www.biz2credit.com/blog/2009/02/16/when-pinching-pennies-doesn%e2%80%99t-help/#comments</comments>
		<pubDate>Mon, 16 Feb 2009 07:26:24 +0000</pubDate>
		<dc:creator>Biz2Credit Advisor</dc:creator>
				<category><![CDATA[Operational Advice]]></category>
		<category><![CDATA[Small Business News]]></category>
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		<category><![CDATA[drum up business]]></category>
		<category><![CDATA[export value]]></category>
		<category><![CDATA[feeling economic pain]]></category>
		<category><![CDATA[high flour prices]]></category>
		<category><![CDATA[renegotiate leases]]></category>
		<category><![CDATA[slow sales]]></category>
		<category><![CDATA[small business owners]]></category>
		<category><![CDATA[Small Business Survival Committee]]></category>
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		<category><![CDATA[the recession]]></category>
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		<guid isPermaLink="false">http://www.biz2credit.com/blog/?p=450</guid>
		<description><![CDATA[Small businesses, the oft-touted economic engine that pays nearly 45% of total U.S. private payroll, is feeling economic pain just as badly as corporate America. This Jan. 11 Associated Press story posted on MSNBC.com took a look at some small business owners who are feeling the recession deeply, like the Minneapolis-based Scandia Bake Shop. There, [...]]]></description>
			<content:encoded><![CDATA[<p>Small businesses, the oft-touted economic engine that pays nearly 45% of total U.S. private payroll, is feeling economic pain just as badly as corporate America. This <a href="http://www.msnbc.msn.com/id/28606826/">Jan. 11 Associated Press story</a> posted on MSNBC.com took a look at some small business owners who are feeling the recession deeply, like the Minneapolis-based Scandia Bake Shop. There, high flour prices and slow sales had the current owner contemplating closure after the shop&#8217;s 60 years in business.</p>
<p>&#8220;They come out in droves and you make most of your money between Thanksgiving and Christmas,&#8221; owner Gary Arvidson told the AP. &#8220;And then this year I was really counting on that and the economy went into the dumper.&#8221;</p>
<p>To cope, the AP said, “small business owners — from neighborhood plumbers to graphic design firms — are paying employee salaries before their own, trying to renegotiate leases and pleading for customers on neighborhood blogs. But despite their best efforts, the customers aren&#8217;t there.”</p>
<p>Raymond Keating, chief economist at the Virginia advocacy group the Small Business Survival Committee, told the wire service: &#8220;People are scared. They&#8217;re not quite sure what to do.&#8221;</p>
<p>Small businesses account for more than 99% of all employer firms and produce almost a third of the nation&#8217;s export value, the story said, quoting federal statistics. So when they hurt, everyone feels the pain, even chain office supply stores who depend on small business owners for business.</p>
<p>Ajay Ekesa told the AP his Kahawa Coffee House in Chicago may not last through the spring. He&#8217;s spreading flyers, opening his shop for community meetings and trying to drum up business on the Web.</p>
<p>&#8220;Right now I&#8217;m trying to do everything I can do,&#8221; he told the AP. &#8220;With every hour that I&#8217;m staying open, I&#8217;m not making money. I&#8217;m losing money, which doesn&#8217;t make much sense.&#8221;</p>
<p>As for the Minneapolis bake shop, it looks like the community is going to rally around it. So far, about 1,000 people have signed a petition to keep Scandia open, the AP said.</p>
<hr/>
<img class="alignleft" style="margin: 10px 5px;" title="Logo" src="http://images.cmpgnr.com/1301986683/Logo1224002477952.png" alt="Biz2Credit Logo" width="138" height="30" /> <em>This article was submitted by Kathleen O&#8217;Connor, a contributing writer for Biz2Credit. Biz2Credit is a small business marketplace that provides entrepreneurs with the latest industry news and financial advice. Send all questions to info@biz2credit.com.</em></p>
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