Brownsville Small Business Failure

Small businesses that are unable to physically flourish can take

According to Black Enterprise, most other sectors of the business community have been able to access the money needed to grow their businesses over the last eight years. African American businesses, however, have not had this same benefit. In quantifiable numbers, African American businesses account for less than 2 percent of all Small Business Association Loans, even though Black-owned businesses comprise over 7 percent of the country's non-farm businesses.

because of gentrification. Gentrification is the process of rebuilding an area bringing in the company of middle class or well-off people, most likely throwing poorer residents out from rising rent prices. So whether you have a home or business you can lose it to gentrification. Some people lack an education and can not have a job that is very well paying, therefore leaving them to live paycheck to paycheck. These people live in the more poorer areas that gentrification some times tend to take over. I have two different opinions on the topic of gentrification. My first opinion

Although the restaurant industry is perceived to have high risk of failure, the risk of a restaurant failing is not too different from other small businesses. Parsa et al. quantified the risk of failure at 26% in the first year and 57% by year 3. He also described several factors that can influence the risk of failure. Those include physical location, firm size, speed of growth, differentiation from other restaurants in the market, adapting to external trends, and management experience. In terms of location and differentiation, Paul’s bar will be located in a new development designed to attract affluent customers and with very few competitors. Paul’s small firm size increases risk because of barriers to attract partners (i.e. suppliers and bankers are prejudiced against smaller firms) and growth that may be too rapid to manage. On the other hand, Robert already has experience in the restaurant business and should know how to run the bar and subsequent restaurant. Their choice of a piano bar may be in response to local trends that favor success.

The land of capitalism where business comes to thrive because when businesses can make or break the economic the government revolve around it. In fact, 6 percent of companies in America makes about 50 percent of American profit, this shows how much power comes with having and building a business America. In the early 2000s before the recession started, black-owned small businesses established 8.2 percent of all loan money from the Small Business Administration (SBA). That number is now depressed to 1.7 percent, per an analysis by the Wall Street Journal. The total volume of loans they are at this time getting is similarly low: 2.3 percent of the roughly 54,000 doled out through the agency, down from 11 percent in 2008. “(Covert, Bryce. Black Small Business Owners Get Left Out Of Loans)”

The Rio Grande Valley (RGV) is growing economically. There has been an increase in new businesses, especially in cities like McAllen, Edinburg, and Pharr. As stated on EconomicsHelp, the main factors that increase economic growth are an increase in aggregate demand and aggregate supply. Thus, a business will succeed in the Rio Grande valley by analyzing the community’s supply and demand.

Brownsville, Texas will improve economically through Texas LNG by providing more jobs to locals and attracting people with a higher education. Brownsville is a little town on, at the tip of South Texas, recognized for its riches in history. However, according to U.S. Census Bureau data and economic website 24/7 Wall St., Brownsville is one of the poorest cities in the nation. Consequently, it is time for a change and revolutionize Brownsville by agreeing to let LNG settle down in the port of Brownsville.

Imagine walking down main street in a small town, you notice that there are many unique store in which you have never come across. After walking into countless stores you are starting to notice that they all have one thing in common. What possibly could all these diverse stores have in common, they all have a 12” by 10” sign with white lettering and red background saying Help Wanted. In “ Heart Land and the Rural South Exodus” by Patrick Carr and Maria Kefalas, your able get the chance in knowing how much rural areas are in danger. In this paper I will argue that thriving small business are going to eventually be in danger persuaded by Carr and Kefalas of triple threat explained by Carr and Kefals, small business owners facing the

So with spatial mismatch becoming a bigger issue as time went by, city gentrification became a routine for all cities creating even more disparity in ranges of wealth. People who have lived in their homes for a long time are now being forced out by plans to incorporate more businesses and malls. Property taxes began rising and as the city centers changed, people weren’t able to afford products in their own communities anymore. They dispersed to different sectors of the city, some moving completely out of the city. Gentrification not only affects where people live. It also affects local businesses. Small business owners can’t keep up with the rent because the community around the owners are now very high in value with new businesses, condos,

On the other hand, it drives out small businesses that can’t afford to stay open or can’t compete with their larger competitors. These businesses are often family-owned and owned by valuable members of the community.

Private investment is based on self-interest and a genuine competitive advantage, and as such will then be sustaining in the long term, and is not dependent upon federal funding programs. There is need to develop an economic model that will begin on the premise that inner city businesses must be profitable and in a good position to compete on regional, national and international scale. Several issues have led to social problems in the inner city. Sub-standard educational opportunities, high rates of unemployment, high crime rates, broken families, and inadequate housing characterize most inner city neighborhoods. In the 19th century, the inner city was the central point for industrial activities, among which neighborhoods were established with rows of terraced houses for the industrial based, low-paid workers (Wilson, 14). In the latter half of the 20th century, factories in the inner city were closed and relocated to suburban locations causing decay and economic decline in the cities they left behind. This economic trend created many social problems including poverty through lack of employment. As this trend progressed those able to move and follow the suburban jobs left the inner city, creating pools of disadvantaged minorities in their wake subject to growing social problem. These social problems will be examined in this research as to how they contributed to the high rate of poverty in the inner city. There is high rate of poverty in the inner

More than a handful of people might argue that what was a small businesses in the past is a distinctively well known corporation now, and that the American Dream’s existence was what gave the people the hope that they could like the other enterprises make it. Every business is in fact born from a small shop or something along those lines, and any big corporation now will appear in the same way. The problem is however that the government is in a literal sense killing small companies with either excessive taxes or over-regulation. Excessive taxes are one of the main causes of why small businesses are being closed. This is because with excessive taxes, come with having to waste more money, and with wasting money means no supplies to continue the shops with and no money to pay the workers. As mentioned previously over regulation is another crucial

One of the major issues with big corporation moving in is that they affect the overall real estate of the local town. This means that as more and bigger corporation move in the price of real estate increase. As the price increase local business are left defense less. This is because big businesses try to acquire prime real estate. This further increases competition and those who can afford to pay remain, while those who are unable to pay are forgotten. A local resident of Blacksburg Mr. Comaratta, who uses to be an assistant manager at Crossroads, a locally owned music and record store stated, “They raised our rent from $4,200 to

secretary of education states that “high-quality education" that encourages "creativity, imagination, and ingenuity’”. It is true that thirty percentage of startup business failure reasons of “unbalanced Experience or Lack of Managerial Experience”, followed by “lack of Experiences in line of goods or services” is about eleven percentage. Interestingly, company competence occupied the highest rate of failure of 46% (Statistic Verification, Entrepreneur Weekly, Small Business Development Center, Bradley University, university of Tennessee Research). In addition, successful entrepreneur usually possess “highly motivated and willingness to take initiative to execute duties” and have appropriately responsible to their activities, decision, and company’s outcomes.

     The barriers to entry are high due to high fixed costs, lack of history in the local community, zoning regulation, and “not-in-my-back-yard” protests.