Small Businesses Going Under Across the U.S.

Big business aren't the only ones hurting during these bad economic times. The small businesses are hurting even worse. It may be the final days of business for the Scandia Bake Shop. After almost 60 years of serving treats like julekake and Oslo rye bread, the Minneapolis, Minnesota store is worried it may have to shut its doors within the week. Shrinking sales, rising flour prices and a downright dismal holiday season have added to their troubles.

They said that between Thanksgiving and Christmas people come out in droves and that is when they make their most money. The 60 year old owner, Gary Arvidson, who took over the business in l993 said "And then this year I was really counting on that and the economy went into the dumper."

Times are tough for small business owners, those whom politicians tout as the backbone of America. As the recession marches on, it is those businesses, which employ about half of the country's private sector workers, that are particularly vulnerable to the squeeze. In order to cope, small business owners, from neighborhood plumbers to graphic design firms, are paying employee salaries before their own, trying to renegotiate leases and pleading for customers on neighborhood blogs. But despite their best efforts, the customers are not there. Pretty sad. We are having several small business in our area close shop.