Gentrification May Not Be So Bad for Small Businesses

I found a recent Forbes article from last November, “Does Gentrification Help Or Harm Small Businesses?” by Chad Otar that discusses how small businesses can be affected by gentrification in neighborhoods like those we’ve discussed in class such as Harlem and Williamsburg. Since we’ve typically looked at gentrification as harmful for small businesses so far in our discussions on displacement, it’s interesting to see an article talking about how it may not be harmful and could even be advantageous. Otar brings up that “the majority of small businesses continued to operate after gentrification was up and running”. He also discusses how small businesses should go about using gentrification in neighborhoods to their advantage, and what to consider when moving forward. This includes things like how much business owners should be able to shoot up prices for new richer consumers, as well as considerations like how much rent will be going up, and whether it’s worth it or not to continuing business in the area.

I chose this article because it directly relates to the readings we were assigned for this week by Winifred Curran. Curran writes 2 papers on looking at the displacement involved in gentrification, focusing more on how small businesses were affected. I also wanted to see how someone else may have viewed the idea of gentrification for small businesses, and what’d be recommended, especially considering that this article was written so recently. Curran’s first paper, “‘From the Frying Pan to the Oven’: Gentrification and the Experience of Industrial Displacement in Williamsburg, Brooklyn”, was written in 2006, and his other paper “In Defense of Old Industrial Spaces: Manufacturing, Creativity and Innovation in Williamsburg, Brooklyn” was written in 2010, so his data was mostly referencing past events and wouldn’t necessarily advise the same things, but both Curran and Otar seemed to make similar points to each other. Curran goes into a lot more detail though, with many more anecdotes of how businesses were affected, from the point of views of owners, as well as even some consumers.

Curran also towards the beginning of his second paper, makes a similar point about how small businesses have “managed to stay and thrive there despite the larger trend of deindustrialization”. Curran and Otar both also talk about what small businesses have to offer, and about what makes them unique, and their strengths in holding their owns. Curran talks a lot about how older businesses are just as creative as the new “creative class” that we’ve also previously discussed in class. Similarly, Otar says to “continue to provide the same services as always, for the same prices, with the same decor and customer service philosophies”, and expresses that he believes this is what allows small businesses to thrive in the midst of gentrification. Curran takes a bigger picture approach though and talks a lot more about what leads to gentrification while Otar focuses more on one topic throughout his discussion about how small businesses should go about surviving. Curran also talks about experiences of those who actually were displaced, for better or for worse, and how some people made a profit off selling their land in gentrifying areas and closing up shop, while others were forced out due to increasing rent prices. Curran’s papers take a lot more into consideration about how everything and everyone involved is affected, but Otar does bring up good and quick advice to those looking to try to make business work in these neighborhoods.

Overall, it’s very interesting to see people discuss something so prevalent and generally seen as detrimental, as something that may actually be a positive business opportunity and taking the side of those businesses who could potentially be affected, while at the same time, focusing on different aspects of the same issue. As we can take away from these readings, gentrification can open up new doors and opportunities for small businesses to thrive, rather than downfall and displacement we had originally assumed for the businesses as well as their owners and workers.

Link to article: Does Gentrification Help or Harm Small Businesses?

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