Business closings reach new record high — Monroe entrepreneurs work to weather the storm, stay afloat during difficult times

Written by Marla Hoffman
Thursday, 05 November 2009 11:27

When you turn on the nightly news or read the latest statistics, you would be hard pressed to find good news when it comes to small businesses.

Economists say the recession is over, and the economy is showing signs of picking up. But drive down Main Street America, and the “For Sale” signs and shuttered store windows tell a different story.

Monroe Chamber of Commerce President Teri Rotella said Monroe’s business community is split between those that are suffering because of a drop in disposable income, and those surviving based on consumer needs.

“There is not a lot of extra funds out there, so hair and nail salons, art and music lessons — these businesses are hurting,” Rotella said.

One industry she said that is thriving is printers.

“Other businesses still need to get their names out there and advertise,” she said. “One printer said they were so busy they had to hire someone to help out. Only time will tell if that will last.”

Rotella said business owners are telling her that they have been forced to cut back, but are hopeful.

“From my perspective we are still in a holding pattern,” she said. “It hasn’t gotten to the point where people are out and spending. But our hopes are high for the holiday season.”

Rotella said the chamber is working on developing new programs for businesses in the new year.

A tough state

Statewide, between Jan. 1 and June 30, 6,944 businesses closed their doors, setting a new record for the first half of any year since 2000, when these figures were first recorded, according to Secretary of the State Susan Bysiewicz.

This represents a 17% increase in business failures from the first half of last year.

A total of 13,878 new businesses opened during the first half of the year, a 9.6% decline from last year’s first half openings. In just the third quarter of 2009, Bysiewicz said that a total of 2,601 businesses shut their doors, compared to 2,432 businesses that closed this time last year.

This is the highest number of recorded closures in one quarter since 2000.

These new numbers bring the total business closings in the first nine months of 2009 to 9,545 — this is 14% higher than 2008 and sets a new record for the first nine months of any year since 2000.

On a positive note, the state recorded 6,624 new business openings in the third quarter, an increase of 2.4% over third quarter 2008.

However, this brings total new business openings for 2009 to 20,494, down by 5.8% from last year.

Connecticut’s unemployment rate during September was at 8.4%, compared with 6% in September 2008, according to state Department of Labor statistics.

Taking a leap

While many businesses are closing up shop, there also are those who decided to test the unstable waters of the economy and start fresh.

Rivalry Sports Grille opened for business in September and has so far beaten the odds. With the World Series this past weekend and NFL football in full swing, the sports-themed restaurant is doing relatively well considering the economic condition of the state, and that many of its counterparts in Monroe have already shut their doors. Additionally, the restaurant put 40 people to work.

“It’s been a challenge getting all the kinks worked out and the restaurant up and running,” said owner Lou Nistico. “We’ve had challenges, but five weeks into it we are running smoothly.”

Despite the immediate success of the restaurant, Nistico said even Rivalry is not immune to the economy.

“Everyone is feeling it one way or another,” he said. “I talk to people everyday, real estate agents and contractors, and we are not doing any different than anyone else.”

Part of the problem is rising costs, said Nistico.

“Food and energy costs are affecting businesses,” he said. “We’re trying to do our best to manage these costs.”

The worst part, said Nistico, is waiting until things get better.

“It’s the anticipation of when this thing is going to turn around, when it’s going to break,” he said. “I’ve been in this business 40 years, and I don’t remember a time when things have been tougher.”

As a business owner, Nistico said he doesn’t see the economy picking up until at least late spring or summer.

“With the cost of energy and food, unemployment and the housing market, I personally don’t see things getting cheaper any time soon,” he said.

Helping your neighbor

While prices remain high, Nistico, a Monroe resident, said he has started using Monroe vendors whenever possible. His contractors, some food suppliers, alternative energy supplier, and his printer are all Monroe-based businesses.

“We try to do as much business in Monroe as we can,” he said. “We know how they feel, and we’ve got to help each other out. I say what comes around, goes around.”

Rivalry is also helping out the community. The restaurant will be collecting donations to help supply local families with food at Thanksgiving along with the Save Our Stepney Task Force. Nistico said they also plan to contribute to the local sports teams and donate as much to the community as they can.

“We just opened up, but we are going out of our way to extend to the community,” he said. “I think businesses should be involved in their communities all the time, not just in times of financial need.”

Rivalry is hosting a grand opening celebration starting today, Thursday, and running through to Sunday. Special guests throughout the weekend include the band The Sellouts; former New York Giant Mark Bavaro; Babe Ruth’s granddaughter, Linda Ruth; and Dennis Accomando, Monroe native and Atlanta Brave, among others.

While Nistico attributes much of Rivalry’s success to the restaurant’s marketing and reasonable pricing, he believes staying in touch with the community and the customers is key.

“Being involved puts your name out there,” he said. “The community will reciprocate if you are helping them out. It’s important we take an active role in the town.”