From The Center Square:
As economic conditions improve, survey shows Illinois small business struggles continue
(The Center Square) – A new survey of small businesses shows economic conditions took a turn for the worse in Illinois in November.
The small business network Alignable reports that nearly half of the small business owners in Illinois (48%) said they could not pay their rent on time and in full. Only one other state, Arizona, had a higher percentage.
Head researcher Chuck Casto said Illinois is an outlier because conditions improved nationwide.
“Thirty-seven percent said they could not pay their rent in full and on time in November which is actually a record low for most of the year,” said Casto.
November saw 34% of small businesses reporting higher earnings compared to last year, up from 25% in September.
Additionally, the percentage of business owners with just a month or less of cash reserves dropped to 29%, a dramatic improvement from 43% in September.
“That is quite a decline over the last few months and hopefully it’s a testament, at least for some industries, to the economy getting a little bit better,” said Casto.
The industries facing the highest percentages of rent delinquencies were transportation, automotive, beauty salons and restaurants.
In November, Massachusetts’ small businesses reported a record low rent delinquency rate of 30%, a dramatic 15-percentage-point drop from October and 19 points lower than September. Researchers noted that considering Massachusetts’ high rental costs, this achievement underscores significant recovery efforts.
Casto said Illinois consumers can make a difference by visiting the mom-and-pop shops.
“Shop local wherever you can,” he said. “It is more important than ever because our retail numbers and what’s happening with the restaurant owners, those were also really disturbing.”
Casto added that without enhanced support for locally owned businesses, there is a risk of a growing number of empty storefronts on Main Street.
