Hollywood Writers Strike Threatens to Hit Small Businesses Hardest
Small production companies and other firms in Los Angeles are already considering layoffs.
From: Inc.com By: Jason Del Rey
As the Writers Guild of America strike threatens to stretch into its second week, small businesses that depend directly or indirectly on the entertainment industry for revenue are starting to feel the financial crunch.Jack Kyser, chief economist for the Los Angeles County Economic Development Corporation, said that 84 percent of the companies in the Los Angeles TV and movie production industry are small businesses that employ less than 10 workers.
“Prop houses and companies that are doing costumes are starting to consider laying people off,” Kyser said. “And then there’s the ripple impact on restaurants, coffee houses, and other businesses in these areas.”
For the complete story go to Inc.com
The recent Writers Guild Strike in Hollywood is but one strong example of how a labor dispute can disrupt many small businesses. Since we are based in Los Angeles, Corra gets to see first hand how the small businesses in the area are starting to feel the economic pain of a protracted strike.
Mind you, small business sufferings aren’t just limited to strikes, but to weather conditions, factory closures and relocations, and even something as terrible as a terrorist threat. So perhaps the lesson to be learned here is to decide whether you will live your regional business to the fates or whether you will expand to a national or greater regional landscape.
Clearly, with the Internet and all the incumbent electronic technology, one can grow a business from a very tiny seed. But in growing that business, one has to explore strategic partnerships and ventures and to research whether new clients can be trusted to pay you in a timely fashion.
Corra suggests you look into our business research services. We can conduct all corporate credit checks and partner-vendor/comprehensive background checks on principals in different companies to help you gauge whether they are reputable and reliable.
It may be time to go national, or even global. But first check them out before you do business.
