Ma and Pa Stores

When economists talk of small business, they usually mean those with fifty to five hundred employees, which means something from an auto dealership to a machine shop to an independent department store. So when economic pundits tell small business people to be creative in handling their payrolls, they mean that cash flow can be difficult in a small business but payrolls still have to be met and so owners should go back to their financial backers, which can mean family members or local banks, to help them deal with a crisis. Even a smaller business, such as a three store supermarket chain, may have to make use of this expedient. But truly small businesses, which are ones with less than ten employees, and sometimes just a delivery boy and a stockman, are in a more serious permanent crisis. They don’t have much of a payroll to meet; what they have to do is pay the rent and the bills to their suppliers just to stay open at all. These businesses are, generically speaking, mom and pop outfits, and take up storefronts all up and down a business thoroughfare. They include minimarts, bodegas, 99 cent stores, nail spas, independent pharmacies, and other places where success means that enough people have stepped over the threshold to make the small purchases that will add up to meet the bills and leave something over for the store owner who is also the store operator. A way to understand such places is to put the economics of these businesses into the context of the social structure of the lives of their owners rather than look at them only as organizations which are more or less efficient ways to convey merchandise to the public than are big box stores or franchises or e-commerce.

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