Old-school values In an increasingly high-tech world, Schilling TV in Pittsfield is marking its 75th year in business, still rooted in its origins as a television repair business. Page 2
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Berkshire Business Journal
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FEBRUARY 2024 I VOL. 3, NO. 2
Conflicting signs and signals
Berkshire small businesses facing a mixture of promise and unease in 2024
GILLIAN JONES-HECK
Ashley Benson, the owner of Optimal Healing in North Adams, says the help she received from the Massachusetts Small Business Development Center in Pittsfield has been invaluable. “What’s been most striking is the endless hours of expert help at no cost to the individual,” she said. By Jim Therrien PITTSFIELD — Every year arrives with a mix of promise and unease, and 2024 is no exception when it comes to the small business community in Berkshire County. Keith Girouard, director of the Berkshire regional office of the Massachusetts Small Business Development Center in Pittsfield, has his finger on the pulse of this sector. He works works closely with Berkshire entrepreneurs when they consider starting a new venture, hope to expand an existing business or want to buy or sell an established enterprise. One trend that Girouard expects to continue in the Berkshires is 2024 is aging small business owners preparing to step away from their firms and pursue something different or retire. “We will be seeing in 2024 some of what we are seeing now,” Girouard said. “And part of that is the buying and selling of businesses. I guess what is fueling that
is the continuation of the retiring wave, where you have business owners that have been in business for a long time.” He’s not sure what sparked this trend, but according to the website teamshares. com, which works with small businesses, over two-thirds of small business owners nationally are planning to retire in the next two years. Many of them do not have a solid succession plan in place, which means their enterprises could vanish once ownership moves on. “All I know is that you have aging owners who are interested in moving on with other aspects of their lives,” Girouard said, “because it’s demanding to be an owner running a small business; and it’s also rewarding.” Berkshire County also is “seeing the retiring of some local brands,” he said. “Some long-standing businesses are going out of business. And those brands are being retired, along with the emergence of new brands. So you have younger en-
trepreneurs — they want to have their own stamp on things; they want to create their own brands.” Girouard said the trends here are similar to what is happening elsewhere and agreed they are likely related to the huge baby boom generation heading into retirement age. But the bottom line for the area is that some local brands will fade away, he said, while new ones will emerge. PANDEMIC EFFECTS Girouard also expects that some economic changes that occurred when the COVID-19 pandemic hit in 2020 will continue or evolve even further. One of those changes is consumer buying patterns, which he said have changed, dramatically, in some cases. “You know the whole consumer economy has shifted since the pandemic, sort of accelerated online buying,” he said. “Although when you look at the
statistics, there is still a high number of people who want to buy from brick-andmortar [stores].” The Small Business Development Center in Pittsfield grasps those realities while working with clients, he said, along with the related trend of the buying and selling of small businesses. Another factor that will affect small businesses in 2024 are high interest rates which make it harder for entrepreneurs to access the capital they need to start small businesses. At this point, it’s hard to predict the direction that interest rates will head as the year progresses. “Right now, they are relatively high, and what that translates into is higher borrowing costs,” he said. A number of Girouard’s clients are interested in buying buildings, “and borrowing costs for those things have to be factored in.” Banks remain “pretty conservative,” SMALL BUSINESS, Page 10