States that hurt small businesses during the pandemic

[Ernie]

During the pandemic, various states allowed big box stores to operate because they had essential services, but shut down small businesses. I heard that some states made big box stores curtain off sections of the store that were not essential services.

Some people claim that these states don't like small businesses and do like the big box stores. Is there any truth to this?

[mike]

During the pandemic, various states allowed big box stores to operate because they had essential services, but shut down small businesses. I heard that some states made big box stores curtain off sections of the store that were not essential services.

Some people claim that these states don't like small businesses and do like the big box stores. Is there any truth to this?

Whether it is because they didn't like the small businesses, who knows. But this is certainly true. For example appliance stores had to close their doors for a period during the pandemic, while the Big Orange and the Big Blue could stay open.

[RZehr]

Doesn't seem like a very politically expedient position for a state to adopt. Although I do think that as bureaucracy, licensing, in the name of "safety" or whatever grows, the result is a legal environment that favors large businesses.
So whether it is intentional or not, small businesses seem to have a tough time making it.

[mike]

It is much more efficient for government to work with fewer larger businesses than with oodles of smaller ones. A lot of non-government programs are like that, for example the local health system has an insurance benefit for its members where they get a certain amount of money per month for "healthy foods." The card only works at Walmart and Giant Eagle, and maybe CVS. I have numerous customers ask whether we can accept the card, and we have checked into it, but the program is not looking for more partners. It's much easier for them to work with a few big chains than with 1,000 independents.

So, my guess is that government will favor large businesses in certain ways just because it's less work for them to manage compliance for example.

[Ken]

During the pandemic, various states allowed big box stores to operate because they had essential services, but shut down small businesses. I heard that some states made big box stores curtain off sections of the store that were not essential services.

Some people claim that these states don't like small businesses and do like the big box stores. Is there any truth to this?

Not true here in Washington which had pretty stringent lockdown regulations in 2020.

Some businesses like health clubs, theaters, bowling alleys and such were closed and indoor dining was closed briefly then allowed to re-open under certain restrictions.

But, for example, both Costco and small local electronics stores had to comply with the same capacity restrictions and both were allowed to remain open.

The sit-down restaurant business got hammered, especially restaurants that were not well positioned for take-out and drive-through. Most of the big corporate restaurant chains are more fast-food oriented and often had drive-through already so they perhaps did better than small sit-down restaurants. But I don't think that was an anti-small business bias. The state and cities were super accommodating about outdoor dining on streets, sidewalks and parking lots.

[Ken]

During the pandemic, various states allowed big box stores to operate because they had essential services, but shut down small businesses. I heard that some states made big box stores curtain off sections of the store that were not essential services.

Some people claim that these states don't like small businesses and do like the big box stores. Is there any truth to this?

Whether it is because they didn't like the small businesses, who knows. But this is certainly true. For example appliance stores had to close their doors for a period during the pandemic, while the Big Orange and the Big Blue could stay open.

In which state? That didn't happen were I live in WA.

[mike]

During the pandemic, various states allowed big box stores to operate because they had essential services, but shut down small businesses. I heard that some states made big box stores curtain off sections of the store that were not essential services.

Some people claim that these states don't like small businesses and do like the big box stores. Is there any truth to this?

Whether it is because they didn't like the small businesses, who knows. But this is certainly true. For example appliance stores had to close their doors for a period during the pandemic, while the Big Orange and the Big Blue could stay open.

In which state? That didn't happen were I live in WA.

Pennsylvania. Here's just one frustrated business owner who vented to the news.

[Ken]

Whether it is because they didn't like the small businesses, who knows. But this is certainly true. For example appliance stores had to close their doors for a period during the pandemic, while the Big Orange and the Big Blue could stay open.

In which state? That didn't happen were I live in WA.

Pennsylvania. Here's just one frustrated business owner who vented to the news.

Here they were limited to 25% of listed capacity plus mandatory masking. But they could stay open. So a small store could only let in a few customers at a time. But they could stay open. But even Costco and Ikea had to follow those rules. They had LONG lines outside and you could only go in every time someone else came out.

How long did that sort of thing stay in effect in PA? Was it short-term during the beginning of the pandemic or longer lasting?

[RZehr]

Here in Oregon, I saw a few small non-essential businesses suddenly have, say a bunch of bananas for sale. Suddenly they were "essential" since they sold food and could stay open. And if a customer came in to buy something else that the business sold, no one stopped them, and no one tried to force them to buy a banana either.

[Josh]

PA was particularly onerous (under the leadership of RIchard Levine, aka Rachel Levine, the current head of the PHS). Certain classes of businesses were just completely shut down. And yes, big box stores got to stay open because, rather conveniently, they all met the "essential" criteria.

Other states were not nearly so heavy-handed. In Ohio the only categories officially closed were barbershops, nail salons, and tattoo parlours (along with certain government offices). The list of essential businesses was so broad it included basically anyone else (including me).