Small Business Owners Express Anxiety Amid Holiday Season Challenges
SALT LAKE CITY — As the festive shopping season commences, entrepreneur Scott Pynes finds himself grappling with a sense of trepidation, a feeling reminiscent of only a few instances throughout his four-decade journey in business ownership.
The co-proprietor of Cactus & Tropicals reveals that this year’s new tariffs have significantly impacted their plant stores. Sales figures remain relatively stagnant, compounded by escalating healthcare costs for employees.
In light of rampant inflation, Pynes notes, “we’re selling less merchandise than we used to.” This uncertainty echoes the formidable challenges faced during both the COVID-19 pandemic and the 2008 financial crisis.
“Who can predict if we will look back on this period similarly?” Pynes remarked in a recent conversation with FOX 13 News.
“It certainly evokes a sense of those tumultuous times. Are we merely at the inception of something detrimental, or have we traversed through the worst phases? This question lingers as we seek clarity.”
In light of these adversities, Pynes is optimistic that holiday consumers will turn out in force for Small Business Saturday, an initiative that follows Black Friday, designed to invigorate spending at local establishments.
- Small Business Saturday was spearheaded by American Express amid the recession in 2010.
- The U.S. Small Business Administration joined as a cosponsor the subsequent year.
- American Express estimates the event has generated over $200 billion in reported sales since its inception.
“Typically, this day yields significant profits for us,” Pynes stated, emphasizing that Cactus & Tropicals will offer an array of discounts and special offers across its three locations.
Derek Miller, president and CEO of the Salt Lake Chamber, articulated the necessity for Utahns to patronize local businesses daily. However, he contends that Small Business Saturday bears heightened importance this year due to the precarious financial landscape faced by many retailers.
“Every enterprise, irrespective of its size or geographic locale, requires two essentials: certainty and stability,” Miller pronounced in an interview. “Regrettably, with tariffs’ persistence and ongoing inflation, both households and businesses find themselves devoid of stability and certainty.”
While most plants at Cactus & Tropicals are domestically cultivated and thus exempt from tariffs, Pynes noted that roughly one-third of their sales encompass non-plant merchandise, such as pottery, predominantly sourced from Asia and subject to import duties.
“We would prefer to source from a U.S. producer,” he remarked. “Yet, such options are virtually non-existent.”
Pynes explained the difficulty in pinpointing the exact tariffs incurred, as many suppliers have instead opted to elevate prices. Nonetheless, he confirmed that his stores have incurred a minimum of $50,000 in new import fees this year.
“When purchasing costs escalate by 20-30%, we can’t simply absorb those increases,” he lamented. “We are compelled to pass some of those expenses to our consumers. While we have been cautious to date — given the economic instability — we have no alternative.”
As consumers deliberate where to allocate their funds this holiday season, Pynes fervently hopes they will appreciate the advantages of supporting local enterprises such as his.
“Numerous studies illustrate that when individuals spend within their community, that capital remains local,” he asserted. “Conversely, purchases made at large chain stores often see funds exiting the state.”
Miller deems small businesses, which constitute over 99% of all enterprises in Utah, as the “heartbeat of our economy.” He further underscores that these businesses employ nearly half of Utah’s workforce.
“Thus, when consumers invest locally, they are not just bolstering those individual businesses,” he stated, “but fundamentally aiding in job creation within their own communities.”
Moreover, Small Business Saturday serves as a platform for individuals to break away from habitual shopping behaviors, promoting broader economic benefits.
“I am confident that if they do so, they will be pleasantly astonished,” Miller concluded, “discovering hidden gems within their community that may have remained overlooked or forgotten. This experience will bring joy, especially if the purchases are intended as gifts for others.”
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