Small Business Owners in Nantes Face Financial Dilemma Amidst Infrastructure Disruptions
Introduction
Small businesses in the heart of Nantes, France, are grappling with an unprecedented challenge, caught between the economic downturn and extensive infrastructure projects that have brought the city center to a standstill.
Declining Revenues and Inability to Secure Aid
Hoang Trinh, owner of Trott in Ride, opened his electric scooter rental and repair shop in 2022, hoping to benefit from increased traffic. However, the upcoming closure of the Anne-de-Bretagne Bridge and the Fosse Quays to vehicles has crippled his business. Despite the significant loss in revenue, Trinh was denied financial assistance from the city because his head office is not located within the affected area.
Inadequate Support from the Commission
The Commission de Règlement à l’Amiable (CRA), established by the city to manage compensation claims, has received praise for its efforts. However, Jérôme Caillé, President of the Union Nantaise du Commerce de Détail (Unacod), acknowledges the challenges faced by smaller businesses, whose complex situations may not fit into the guidelines.
Macroeconomic Issues and Urban Disruptions
The economic downturn and ongoing infrastructure projects have compounded the woes of Nantes businesses. Caillé reports that over a third of retailers experienced a decline in revenue during autumn, squeezed between the financial crisis and the disruption caused by construction works, which have decimated foot traffic and limited accessibility.
Struggling Businesses and Closures
A bar facing La Grue Jaune has filed for liquidation, while the Mana, a poster museum-shop, has closed its doors in favor of a more favorable location. Jérôme Cuny, President of the Prairie aux Ducs-Nefs business association, has witnessed the hardships experienced by small retailers near the Parc des Chantiers. Despite implementing austerity measures and working extended hours, he was initially denied compensation because his revenue decline was deemed insufficient.
Lack of Support for Resilient Businesses
Cuny believes the CRA framework favors larger businesses with greater financial stability and resources to withstand the disruption. Smaller businesses, with limited cash flow and support, face an uphill battle in securing assistance.
Emergence of Vacancy and a Negative Cycle
Business closures in the city center have contributed to a growing number of vacant storefronts, creating a snowball effect that discourages new businesses from establishing themselves. Caillé advocates for increased municipal support for young entrepreneurs and flexible lease arrangements to address this issue.
Unresolved Disruption and Economic Distress
As the Anne-de-Bretagne Bridge project continues, the challenges confronting Nantes businesses remain unresolved. The combination of economic slowdown, infrastructure disruption, and perceived inadequacies in support mechanisms has created a dire situation that threatens the survival of small businesses and the vitality of the city center.
