Small businesses in Sacramento still face struggles five years post-pandemic
- Sacramento small businesses continue to experience financial constrictions five years after the pandemic.
- Recent statistics indicate that while there are new business openings, many are closing, revealing a mixed economic environment.
- Local businesses are calling for community support and changes in how small enterprises are treated amidst ongoing economic challenges.
In Sacramento, California, the impact of the COVID-19 pandemic continues to be felt by small businesses as they struggle to recover even five years later. The owner of Strapping Store, for example, announced via Instagram a 70% off warehouse sale due to financial difficulties caused by the pandemic. Staffing numbers have significantly decreased from 17 to 6 employees, and the owner, Stewart, is concerned about rising supplier costs due to tariffs. While Sacramento has seen growth in new businesses, with 10 opening and 6 closing in the early part of 2025, many existing businesses are still facing considerable hardships. This discrepancy highlights the ongoing challenges small businesses encounter in adapting to a shifting economic landscape, including consumer habits that have increasingly moved online. Local and state regulations further complicate their situation, as highlighted by Barry Broome, CEO of the Greater Economic Council, who pointed out that current labor laws primarily benefit larger corporations, unlike smaller establishments. Despite the city experiencing overall economic growth, the combined effects of changing consumer behavior and increased operational costs pose a significant threat to the survival of small businesses in Sacramento. This situation calls for greater community engagement to support local enterprises and a cultural shift in how businesses are perceived and supported.