Windy City ranks 55th nationwide in recent study.
Chicago Small Biz Climate Is Lackluster
American City Business
Journals recently released a study on the state of small
business in major cities across the country, and the news for Chicago was not
good: 55th place
among 106 major markets.
While dismal, the news wasn’t a surprise for
Windy City businesses employing fewer than 50 employees. According to Chicago Business
Journal, a Chicagoland Chamber of
Commerce poll of small businesses last fall found that only 28 percent believed
the Chicago economy would strengthen in 2016 (down from 42 percent who thought
the economy would strengthen in 2015).
The problems can be taken straight from the
headlines: Crime rates, property taxes, sales taxes, and the minimum wage rate
are rising while the population is dwindling. Despite some reductions in
regulations, there are still layers of red tape that make it difficult to open
a business. The city is mired in billions of dollars of debt for city employee
pensions, and the public school system is falling apart. And to top it all off,
the government officials tasked with turning everything around are inept and
corrupt. It’s in this environment that small businesses are trying to survive
and grow.
“The city of Chicago is a key component to the
state of Illinois’ economic health,” said Kim Clarke Maisch, NFIB/Illinois
state director. “It is not at all surprising small business owners are
suffering in a city that refuses to recognize basic economic tenets. The city
imposed a $13 minimum wage, they are expected to mandate five paid sick days,
and are known for their overly burdensome red tape. This type of economic
climate is what leads small businesses to move across state lines.”
