Unique small businesses fail to come back in New Orleans

RAW STORY
Published: Thursday August 24, 2006

According to the New York Times, the little restaurants, quirky shops, and small manufacturers that formed the base of New Orleans' economy prior to Katrina face an uncertain fate, RAW STORY has learned.

It is estimated that 95% of the 22,000 businesses in New Orleans before the hurricane had fewer than 100 employees -- in most cases, fewer than 25. This included not only the small shops that depended on the tourist trade but also the artists and manufacturers that supplied them and the lawyers and accountants that served them.

Many of these businesses either have closed or are barely hanging on, and the state expects that hundreds may vanish permanently. A recent study by Louisiana State University found that out of 8500 businesses that were phoned, 60% either did not answer or had had their phone service disconnected.

Times are tough even for shops in the more propserous areas, but in black neighborhoods like the Ninth Ward, almost everything is gone. Many business owners say they feel too overwhelmed by the lack of reliable electricity, water, and personal security to continue. Although new businesses will replace them in time, they are unlikely to have the charm or cultural value of those that have failed.