Metro Swim Shop Founder Voices The Struggles Of Small Businesses As They Navigate Choppy Waters
Small businesses in the American economy are often overlooked, but they significantly contribute to job creation, economic dynamism, and overall prosperity. However, as we usher in 2024, small enterprises face numerous challenges and economic struggles.
The U.S. Small Business Administration reports that 99.9% of all businesses in the country are small businesses, comprising 33.3 million businesses. This dominance isn't merely symbolic; it underscores their significant role in shaping the economic landscape and fostering local communities.
New Jersey, a state with a notable small business presence, has witnessed a concerning rise in unemployment rates over the past year. With an uptick of 1.3%, this shift indicates specific economic challenges within the state, posing a potential threat to the stability of small businesses. Rising inflation poses a significant challenge for both consumers and small business owners, as they have less buying power compared to larger competitors, disproportionately affecting their operations.
"Just because the stock market is doing well and big e-commerce companies are thriving doesn't mean that small businesses or ordinary people are," notes Xuming Wang, the owner of Metro Swim Shop, echoing the sentiments of countless small business owners coming to blows with the harsh realities of inflation. The disproportionate impact on smaller enterprises, coupled with their limited buying power, threatens to erode already thin profit margins.
One of the overarching issues faced by small businesses is the competitive imbalance in the U.S., where big e-commerce companies often sidestep local taxes and regulations, placing small enterprises at a distinct disadvantage. The legislative and business environment remains, as Mr. Wang observes, "hostile to small businesses" due to a lack of lobbying power and attention on the national stage.
With its ever-evolving policies, the pandemic has left an indelible mark on small businesses, and Metro Swim Shop is no exception. Mr. Wang sheds light on the struggles faced by small business owners, particularly in comparison to their larger counterparts. From the Great Resignation to the difficulty in finding staff and resources, small businesses navigate a challenging landscape. The struggle of living paycheck to paycheck has made the lives of many people truly difficult.
Xuming Wang emphasizes the importance of supporting small businesses, drawing attention to issues like unfair competition from online giants. He shares his experiences and strategies for overcoming challenges, including collaborations with veteran associations and hiring local individuals to fill staffing gaps. Metro Swim Shop's unique program working with the Veterans Association (VA) exemplifies its commitment to overcoming hiring shortages, especially post-pandemic.
"I landed in San Francisco in 1985. I wanted to have my own business. That's always been my dream," reflects Mr. Wang on the American Dream. He emphasizes that the American Dream used to be achievable for anyone, regardless of their background. However, the reality has made it harder for small businesses to succeed. Despite many struggles, this resilient entrepreneur has found success in leveraging the VA for supplemental staffing and employing a diverse workforce, including youth and individuals with flexible schedules.
The Metro Swim Shop products support competitive swim teams at the YMCA, private swim clubs, and universities with top-notch gear. The company provides men's, women's, and youth swimwear and other associated items like apparel and goggles.
The company has successfully integrated an omnichannel approach, with both physical and e-commerce presences to match the current market demand. Metro Swim Shop has also implemented remote work for staff administration, allowing them to be in different states and have access to technology such as IP phones to answer customer calls and emails, and process orders. The company uses this approach to retain its employees. Invested heavily in both online revenue and technology, Metro Swim Shop allows employees to maintain a balance of life.
According to Mr. Wang, the success of small businesses is generally attributed to the implementation of these two approaches. They are now embarking on the next level of business development, aiming to bring their experience and technology to future businesses they want to acquire or consolidate.
As small businesses like Metro Swim Shop continue to face multifaceted circumstances, policymakers, communities, and consumers must recognize their pivotal role. Nurturing an environment that supports small businesses ensures their survival while contributing to the health and resilience of the broader economy. The problems that small businesses face serve as a sobering reminder of how essential they are to the fabric of American society.
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