Seattle small businesses struggling to survive seek help
Store owners in Seattle say they are left with nothing as they fight to survive in an increasingly difficult-to-afford city. Mayor Katie Wilson launched a new initiative to protect and attract jobs, but desperate businesses are wondering if help will arrive in time.
SEATTLE – Seattle small business owners say they are exhausted and running out of money as fight to stay afloat in an increasingly expensive city. As local business owners struggle with shrinking profit margins and growing tax pressures, city leaders are trying to offer a path forward.
Local perspective:
Sam Thompson, owner of Seattle Biscuit Company, serves Mississippi-style food as he struggles to cover the rising costs needed to keep his doors open.
“I love serving the community and I want to be here,” Thompson said. “I want to stay. But every day it’s harder.”
Like many independent hospitality operators, Thompson operates under constant financial pressure. “As a small business and especially as a restaurant, the margins are small,” he said.
Sam Thompson works behind the counter at Seattle Biscuit Company. (FOX 13 Seattle)
Mayor launches task force to protect jobs
What they are saying:
In response to growing economic pressure, Mayor Katie Wilson signed a new executive order aimed at creating a dedicated task force by October. The coalition will bring together local businesses, industry groups and community leaders to find ways to retain and attract jobs across the city.
Seattle Mayor Katie Wilson signs executive order to create citywide jobs task force. (FOX 13 Seattle)
“It is a high priority for me and my administration that small, medium and large businesses can be successful in Seattle,” Wilson said.
The task force is scheduled to present its first round of recommendations next February, focusing on streamlined policies and permitting processes to help smaller businesses thrive.
Seattle Mayor Katie Wilson talks about a new task force aimed at creating jobs across the city. (FOX 13 Seattle)
A independent economic evaluation commissioned by the Seattle Office of Economic Development highlighted the underlying vulnerabilities driving these policy changes.
“Over the past decade, Seattle’s economy generated strong growth, higher wages and broad opportunities, but relied heavily on a small number of large employers,” the Seattle Office of Economic Development said. “As the economy changes, Seattle must retain employers and workers while creating the conditions for more industries and midsize businesses to grow.”
The assessment further noted that high costs impact businesses differently across sectors, noting that “restaurants and childcare businesses are squeezed: low margins leave little room to absorb costs.”
Economic “sluggishness” and risks to income
Go deeper:
The city’s effort comes amid widespread concern from business leaders. Jon Scholes, president of the Seattle Downtown Association, described the local economic climate in stark terms.
“Our city’s economy can perhaps best be described today as ‘slow Seattle,'” Scholes said.
City leaders recognize an urgent need for economic diversification. AI-driven tech layoffs and a wave of vacant locations have served as warning signs for municipal revenues.
Currently, Seattle’s top 10 companies pay 75 percent of the JumpStart payroll tax. If even a major corporation leaves, the city faces a serious loss of tax revenue.
Scholes emphasized that tax increases are not the solution to the city’s financial problems. “We don’t think we need more business taxes in Seattle,” Scholes said. “We need more businesses in Seattle that pay taxes.”
Business owners seek relief
What’s next?
For corner store owners, daily operations require making difficult decisions just to survive.
“I can’t even keep track of all the taxes, but it’s overwhelming,” Thompson said.
Sam Thompson working at Seattle Biscuit Company. (FOX 13 Seattle)
While the City Council promises help, local business owners are doing their best to hold on in the meantime. Small business owners say they hope to secure a place at the table as the city shapes its economic future.
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The source: Information contained in this story came from the Seattle Office of Economic Development, the Seattle Downtown Association and original interviews and reporting from FOX 13 Seattle.