NYC Partnership economic impact analysis update, February 2002

NYC 9/11 Public Portal Document

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The retail sector will continue to feel the force of September 11th during the 2001 holiday season, especially in high-end department stores and in specialty retail establishments. The decline in the financial services industry and the loss of high-spending international tourists will damage retail businesses. Smaller stores are likely to suffer cash-flow difficulties and may encounter problems with creditors.

> Small Business: Small business traditionally has played a critical role in Lower Manhattan’s economy, often by providing essential services and products to larger enterprises and to the area’s residents. Prior to September 11th, thousands of businesses, employing more than 100,000 people, were located in Lower Manhattan, south of Chambers Street. Approximately half of these firms occupied niches in financial and professional services. More than 700 businesses located in the World Trade Center complex were either destroyed or sustained extensive damage. Many other businesses in the vicinity have seen their sales decline by up to 80% because of disruption and damage to the area. Small businesses tend to be cash-based and underinsured, and risk closure if they don’t receive financial support to meet payroll, rent, utility bills and other accounts.

14 New York City Partnership and Chamber of Commerce

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