Small Businesses on the Brink in Boston: Rising Costs and Closures Threaten Local Economy

Small businesses in Boston are struggling to keep up with the rising costs, resulting in closures along Massachusetts Avenue. The latest casualty is Guitar Center, a popular store that shut down despite being frequented by musicians like Cyrus Hayes, a senior at Berklee College of Music. The cost of operating a small business is on the rise, and it’s causing shops to close one by one.

Jon Hurst, president of the Retailers Association of Massachusetts, highlights high rent prices, inflation, insurance costs, and remote work as key factors impacting these mom-and-pop shops. Despite the challenges, business strategy director Alia Hamanda Forrest remains optimistic about helping fill vacant storefronts caused by the pandemic through the Space Grant Program that offers grants up to $200,000 for rent, security deposits and improvements.

Austin Chen has been running Berklee Noodles Factory with his family for seven years and expressed deep concern over these closures. He urged customers to visit local businesses like his establishment for a bowl of ramen as every customer visit helps them sustain their business. Small businesses operate on thin profit margins and are especially vulnerable during inflation rates that impact their operations. Chen emphasized the importance of local patronage in keeping small businesses alive during challenging times.

Despite the challenges faced by small businesses in Boston, there are still opportunities for growth and success through support from the community and government programs like the Space Grant Program.