CT needs to be friendlier to small businesses

Connecticut, ranked as one of the least favorable states to start a small business, presents unique challenges to entrepreneurs.

Nearly half of all workers in the state are employed by small businesses, which not only serve as the backbone of Connecticut’s economy but also play a critical role in shaping the community’s social structure.

As someone who grew up in a family that owns a small ice cream business in Torrington, I have seen firsthand how these businesses boost community spirit and inclusivity through their unique products and services. However, the high cost of living and strict regulatory environment in Connecticut pose significant challenges.

For instance, our family business has struggled with the increasing costs of ingredients and labor, which have been made worse by rising minimum wage rates and high taxation. Customers then blame us for price increases without taking into account factors out of our control. These economic pressures significantly stunt our ability to operate effectively and remain competitive.

The economic impact of small businesses in Connecticut is profound. According to the Bureau of Labor Statistics, small enterprises, defined as those with fewer than 500 employees, were responsible for 85.3% of the net job gains in the state. Yet, despite their significance, small businesses encounter numerous obstacles. The high cost of utilities, rent, and wages due to Connecticut’s high cost of living makes it difficult for small businesses like ours to remain financially viable.

Additionally, the tax burden in Connecticut is considerable. Property taxes and corporate income taxes significantly strain our business finances, leaving little room for growth or expansion. The lack of targeted support from the state worsens these challenges, making it harder for small businesses to thrive.

Our experience during the COVID-19 pandemic highlighted these challenges. As we navigated the complexities of state laws and sought relief through loans, the process was inconvenient and the aid insufficient. This situation highlights the need for more support systems for small businesses in Connecticut.

Addressing the challenges faced by small businesses like ours requires targeted solutions that directly address the specific issues we encounter daily. For instance, simplifying the tax code and reducing bureaucratic hurdles could significantly ease the operational burdens on small businesses.

Creating incentives for local sourcing could help reduce our ingredient costs, which are a major expense for our ice cream business. Tailored financial programs that offer low-interest loans or grants to small businesses could help us manage the high operational costs that come with running a business in a high-cost state like Connecticut. Also the state could foster a more inclusive community by encouraging collaboration between small businesses, universities, research institutions, and government agencies.

In conclusion, the state of Connecticut must recognize and address the specific needs of small businesses to foster a more inclusive and prosperous economic environment. By implementing targeted programs and initiatives aimed at alleviating the challenges faced by small businesses, Connecticut can enhance its position as a hub for innovation and entrepreneurship, ensuring the sustainability and growth of its economic backbone.

Marissa Peterson of Harwinton is a student at Central Connecticut State University.

The views expressed here are not necessarily those of The Lakeville Journal and The Journal does not support or oppose candidates for public office.

Latest News

State intervenes in sale of Torrington Transfer Station

The entrance to Torrington Transfer Station.

Photo by Jennifer Almquist

TORRINGTON — Municipalities holding out for a public solid waste solution in the Northwest Corner have new hope.

An amendment to House Bill No. 7287, known as the Implementor Bill, signed by Governor Ned Lamont, has put the $3.25 million sale of the Torrington Transfer Station to USA Waste & Recycling on hold.

Keep ReadingShow less
Juneteenth and Mumbet’s legacy
Sheffield resident, singer Wanda Houston will play Mumbet in "1781" on June 19 at 7 p.m. at The Center on Main, Falls Village.
Jeffery Serratt

In August of 1781, after spending thirty years as an enslaved woman in the household of Colonel John Ashley in Sheffield, Massachusetts, Elizabeth Freeman, also known as Mumbet, was the first enslaved person to sue for her freedom in court. At the time of her trial there were 5,000 enslaved people in the state. MumBet’s legal victory set a precedent for the abolition of slavery in Massachusetts in 1790, the first in the nation. She took the name Elizabeth Freeman.

Local playwrights Lonnie Carter and Linda Rossi will tell her story in a staged reading of “1781” to celebrate Juneteenth, ay 7 p.m. at The Center on Main in Falls Village, Connecticut.Singer Wanda Houston will play MumBet, joined by actors Chantell McCulloch, Tarik Shah, Kim Canning, Sherie Berk, Howard Platt, Gloria Parker and Ruby Cameron Miller. Musical composer Donald Sosin added, “MumBet is an American hero whose story deserves to be known much more widely.”

Keep ReadingShow less
A sweet collaboration with students in Torrington

The new mural painted by students at Saint John Paul The Great Academy in Torrington, Connecticut.

Photo by Kristy Barto, owner of The Nutmeg Fudge Company

Thanks to a unique collaboration between The Nutmeg Fudge Company, local artist Gerald Incandela, and Saint John Paul The Great Academy in Torrington, Connecticut a mural — designed and painted entirely by students — now graces the interior of the fudge company.

The Nutmeg Fudge Company owner Kristy Barto was looking to brighten her party space with a mural that celebrated both old and new Torrington. She worked with school board member Susan Cook and Incandela to reach out to the Academy’s art teacher, Rachael Martinelli.

Keep ReadingShow less