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A Pandemic Entrepreneurial Boom?
Ildefonso and Camren Guzman with their kids in their new business, Mi Rinconcito Salvadoreña.
Brendan Loughman, owner of Valley Florist, prepares a bouquet for a busy Valentine's Day.
One might think that people would be more reluctant to take the risk of starting a new business during the COVID-19 pandemic. There has never been a more difficult time to run a business in our nation, with business owners being forced to pivot as best they can to stay up to date with ever changing consumer demands, new regulations and numerous other challenges. However, while it may seem counterintuitive, there has actually been a significant rise in the number of new businesses starting.
According to the Census Bureau, there were 4,406,824 business formations in the United States in 2020, a 26.8% increase over 2019. If we just looked at the second half of the year after the pandemic struck, then the increase was actually 53.7% over the second half of 2019. In Massachusetts alone, there were 62,655 business formations in 2020, which is a 9% increase. However, there was a 31% increase in the second half of the year when compared to the second half of 2019.
“We know this is an incredibly difficult time to be running a business, but many people are looking ahead and seeing an opportunity,” said Brendan Hannen, Micro-Loan Manager at the North Central Massachusetts Chamber’s economic development arm the North Central Massachusetts Development Corporation “There are grant and lending programs available, viable empty storefronts, and people have had plenty of time at home to think about it.”
“This boom in new businesses isn’t a new phenomenon. We usually see a spike in new small businesses during economic downturns” said Sandie Cataldo, Economic Development Manager at the North Central Massachusetts Chamber of Commerce. “It could be driven by recent unemployment, corporate shifts to outsourcing or by new opportunities created by business closings in the marketplace. Individuals start to seek out their own opportunities by creating their own businesses.”
When the COVID-19 pandemic hit in March of 2020, Massachusetts businesses shut down temporarily, or worse. According to a Boston.com news report, the number of small businesses that are open dropped by 37% in 2020, with revenue down by 44% since the start of last year.
The opposite effect happened for co-owners Carmen and Ildefonso Guzman, who opened their business Mi Rinconcito Salvadoreño in Fitchburg, MA in July 2020.
The Guzmans just bought their new home in Fitchburg when they noticed that there was a lack of Central American/Salvadorian products and food in the area, and were forced to travel to either Worcester or outside of Boston to get the products that they needed.
“We took the risk of opening up a new business, and we are so glad we did,” said Ildefonso Guzman. “Customers in the local area were very happy to have something nearby as well.”
Mi Rinconcito Salvadoreño, which translated to “my small corner of Salvador,” is more than just a convenience store, with cultural foods and products, party supplies, as well as customization of products like t-shirts, masks, and more. Guzman said it was his wife’s idea to bring their own little corner of Salvador to Fitchburg.
“I couldn’t do this without her,” he said. “Without her, I couldn’t make it.”
Although the Guzmans had already started planning their opening pre-pandemic, COVID-19 definitely threw a wrench in their plans and opening timeline.
“It wasn’t easy,” said Carmen. “We were just about to get our permits, and then COVID hit, and City Hall closed down. We had to wait until things were back up and running.”
The North Central Massachusetts Chamber of Commerce provided loan assistance to the Guzmans to help them in starting and opening up their business for July 2020.
“We are more than grateful to have the help and assistance of the Chamber,” Ildefonso said. “No one knew about us, but with the help of the [North Central Massachusetts] Chamber [of Commerce], we continue to thrive and get new customers all the time through their advice and amazing support.”
The Chamber’s economic development arm - the North Central Massachusetts Development Corporation (NCMDC) - provides loan assistance to businesses in Worcester and Middlesex Counties. The NCMDC is certified by the U.S. Small Business Administration (SBA) and the U.S. Department of the Treasury under the Community Development Financial Institutions (CDFI) Program and works in partnership with local banks, credit unions, chambers of commerce and area nonprofits to support emerging microenterprises, small businesses, and community projects with loans and business assistance.
“We are so happy to see customers coming in and trying new or familiar things. It’s been an amazing experience for us, getting customers from all over Central Massachusetts and finding us,” said Carmen.
You can visit Mi Rinconcito Salvadoreño at 444 Main Street in Fitchburg, MA, as well as on social media via Facebook and Instagram.
Guzman added: “We love Fitchburg. The people, the [North Central Massachusetts] area - all of it. We can make it a great city. COVID-19 can either make you weaker, or it can make you stronger... And it definitely made us stronger.”
Brendan Loughman, new owner of Valley Florist in East Templeton, MA, was one of those who found opportunity during the pandemic.
“A lot of the leg work was done prior to COVID, with the owners of the shop looking to sell, and I had been contemplating starting a business,” Loughman said. “I happened to be driving by one day as I live right down the street, and something just told me to stop in.”
With all of the paperwork, ideas, and creativity in place, Loughman was finally able to acquire Valley Florist in July 2020 as the new business owner.
“When COVID-19 hit, plans were already in the works and nearly finished, so I thought to myself, ‘it’s worth a shot - let’s see what happens.”
“The [North Central Massachusetts] Chamber of Commerce was so helpful in helping us hit the ground running,” he said. The Chamber provided loan and technical assistance that enabled Loughman to buy the flower shop and start his business.
Valley Florist is a 3-in-1 location including a gift shop, a greenhouse, and flower shop. The flower shop was established in 1958, and soon after adding a greenhouse where they grew their own flowers, vegetables, and more. The gift shop was added approximately 10-15 years ago, turning Valley Florist into your one-stop shop for your floral needs.
He mentioned even though there has been a slight down turn in revenue, regulars still come in for their special occasions or holiday flora.
“It’s been a record year for the greenhouse,” Loughman stated. “Since everyone is home, people have picked up gardening.”
Valley Florist is located at 1 Valley Drive in East Templeton, MA, just over the Gardner line. In-store shopping is an option for customers, or they can order online via their website www.thevalleyflorist.com.
Although the pandemic has certainly caused significant damage to businesses in Massachusetts, there is no doubt that there has been an increase in entrepreneurship, especially in North Central Massachusetts. Our work supporting small businesses circles back to our mission of “Building Businesses, Building Communities.” The North Central Massachusetts Chamber of Commerce plays a leadership role in the region’s economic advancement, by providing trusted resources, a strong business network and a support system for businesses of all sizes and industries.
We invite you to learn more about the North Central Massachusetts Chamber of Commerce at: https://www.northcentralmass.com/membership-information/overview/
