Black small-business owners are grieving the loss of communal areas due to increasing rents and fast-paced development.
T room, meditated quietly with her eyes closed. The pleasing aroma helped her feel serene and at peace, creating a tranquil atmosphere in the space. Asha was fully immersed in her meditation, with the scent of incense aiding in her relaxation and mindfulness. Salt Eaters Bookshop He welcomed guests who arrived to participate in Black Queer Speed Dating, one of several events held in the community area.
The Underlying Causes of Black-Owned Small Business Closures in Los Angeles
Attendees were able to pick up name tags and indulge in a variety of fruits, meats, and cheeses laid out on a table. The bookshop in Inglewood, California is thoughtfully designed to be visually appealing, featuring a tribute painting of Latasha Harlins, a young Black girl who was tragically killed by a Korean store clerk in 1991, which sparked the events leading up to the 1992 riots.Los Angeles The Salt Eaters Bookshop is known for organizing and hosting events and businesses that celebrate Black culture, as well as featuring a vibrant community board with eye-catching colors.
Grant believes that there is still unfinished work that needs to be completed.
“People are unaware of the effort required behind the scenes to maintain a space, including keeping the electricity, air conditioning, and wifi functioning,” she explained. “It requires a lot of work. Although it is rewarding, these beloved spaces are often managed by only a few individuals, so there is not a lot of support behind it. I am dedicated to giving my all until the end.”
The Impact of Business Closures on Community Safety
fter being established in 2020, the bookstore has faced financial difficulties, such as the increasing expense of renting commercial space.survey study conducted by the Joint Center for Political and Economic Studies, it was discovered that 32% of Black small-business owners experienced challenges related to the rising cost of commercial rent.survey A recent study conducted by the California Reinvestment Coalition, now called Rise Economy, found that 54% of small business owners in California frequently experience displacement. The survey also revealed that businesses owned by people of color are particularly affected, often having to move due to landlords raising commercial rent prices. Additionally, a report by the National Association of Realtors highlighted the issue of increasing commercial rent prices.increased by 3.5% In 2023, the demand for retail spaces is greater than it was prior to the start of the Covid-19 pandemic.
As Grant marks the beginning of a new three-year lease, she is concerned about the difficulties that may arise, particularly the yearly rent hikes. She mentioned that the new lease has raised the bookshop’s overall monthly budget for rent, utilities, and miscellaneous expenses by $500-$1,000.
Grant understands that with the increasing cost of commercial rent and limited financial resources, having a community space in Downtown Inglewood comes with challenges. He believes that the rapid and aggressive development in the area will only continue to rise in the future.
Potential Solutions to Address This Problem
In 2023, Grant began hosting rent parties to help cover expenses. The initial party was centered around Beyoncé’s Renaissance album. A few months later, the bookshop held another event on Juneteenth, also themed around the Renaissance. All profits from the ticket sales were donated to the bookshop.rent relief fund The fundraising campaign is still active and has reached 60% of its target. Grant stated that the funds raised have helped cover several months of rent for the bookshop.
Grant expressed that he does not want the space to be endangered once more.
America, spoke about the challenges faced by African American entrepreneurs during the conference. She discussed how history, lack of access to capital, and discrimination have all contributed to the struggles of black small business owners. Pryor emphasized the importance of supporting and empowering black entrepreneurs in order to create a more equitable and thriving society.California Pryor stated that the Black community spaces were greatly impacted by the Covid-19 pandemic, with many facing challenges in paying their rent due to shutdowns. Pryor mentioned that even when businesses qualified for financial assistance programs like PPP and EIDL, they were already too behind in rent to catch up.
Stories of Black-Owned Small Business Owners Facing These Challenges
study, minority-owned businesses were disproportionately affected by the economic challenges brought on by the pandemic, leading to a higher rate of closures compared to white-owned businesses.study study conducted by Robert Fairlie and published by the National Bureau of Economic Research found that there was a 41% drop in the number of active Black small-business owners in 2020. report In 2020, it was discovered that Los Angeles experienced the highest number of businesses closing permanently compared to any other city in the United States.
Pryor argues that it is important to provide financial support to Black businesses in order to create a place for the community to gather. He believes that without proper funding, the community will suffer when these businesses are forced to close, as they are the heart of the community.
Erdavria Rose Simpson hosted a garage sale, she is one of the owners and founders.Lazy Rose Cafe In Los Angeles, a Black-owned coffee shop called Lazy Rose Cafe recently shut down. As customers browsed through items at a garage sale, music from the musical Hamilton could be heard playing in the background. The cafe’s owner, Simpson, used to play songs from Hamilton and Disney movies at the cafe to symbolize her dedication to serving others. Various items from the coffee shop, including tea bags and glass containers, were displayed on two long tables for sale to loyal customers of the cafe.
Simpson, who grew up in Los Angeles, decided to open the cafe after feeling overwhelmed from her time in the navy and working for the Los Angeles mayor. She noticed that Black women were often under more pressure and wanted to establish a space where they could relax and take a break.
Simpson, along with partners Antonio Martin and Yvonne and Kevin Dunigan, launched the Lazy Rose Cafe in the Mid-City area in 2020, offering tea parties and entrepreneurial workshops to the community. Unfortunately, the storefront permanently closed in September 2023 because of financial difficulties, specifically the rising costs of rent and business expenses.
“I am still deliberating on what to do next,” Simpson stated. “I am eager to continue making a significant difference, as I have always been focused on my community. Therefore, I am contemplating what my next move will be.”
The proceeds from the garage sale will not fully offset the financial losses incurred from running and upkeeping the cafe. However, for the owners, the sale serves as a means of moving on and grieving. Simpson mentioned that she and the other owners invested a significant amount of money from their own savings to start the cafe.
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A Call to Action for the Community as a Whole
They made enhancements to the property by adding stairs and counters and buying a water heater, while also paying $4,000 per month for rent in the first year. The rent went up to $4,500 for the next two years before reaching $5,200. Despite applying for financial assistance through 52 grants, they were denied. After unsuccessful negotiations with Botach Management, the property management company, to lower the rent, they ultimately had to close down the business. Simpson mentioned that they had numerous discussions about reducing the rent but were unable to reach a consensus.
Botach Management did not reply to inquiries for a statement.
Billi Sarafine, a regular customer and active member of the Lazy Rose Cafe, expressed her surprise and sadness over the cafe’s closure. She will miss holding her events there and has had to find alternative venues for her meetings. Sarafine lamented that the new spaces they are using are not owned by Black individuals, so they do not provide the same sense of belonging and safety. Despite this, she and her community are trying to support each other and empower one another.
Although Andre Taylor doesn’t typically drink coffee often, he introduced a friend to the Lazy Rose Cafe one day and was immediately drawn to the positive atmosphere of the café. After having a meaningful conversation with the owners about love and personal development, he decided to become a part of the community. Taylor expressed his gratitude for the opportunity to experience a strong Black presence in the neighborhood, which he rarely sees. He became attached to the café after meeting the owners. With the closure of the Lazy Rose Cafe, Taylor misses the energy and diversity of his community. He feels a sense of emptiness in the neighborhood without the café and believes that the absence is felt by everyone in the community.
Simpson had to completely close the door in order to make progress.
She mentioned that while she is exploring various opportunities, she also needs to allow herself time to grieve before moving forward and focusing on how to best support her mission of promoting lazy days for minorities.
