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Gainesville business license renewals are down
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The downtown Gainesville building that held the former eatery Mojo’s is still available for lease.

These days the "closed" sign is the sign of the times.

Of the owners of 2,322 businesses that were licensed in the city of Gainesville last year, 6 percent did not renew their business license this year, for a loss of 156 businesses. The drop-off was not as bad as it could have been.

When the deadline for business license renewals passed in April, more than 380 business owners had not renewed. If that number had stood, it would have meant that 16 percent of businesses licensed in Gainesville last year had closed.

As it is, more businesses than usual are shuttered across town this year, leading to a loss of tax revenue for the city and jobs for the community.

Kit Dunlap, president and chief executive officer of the Greater Hall Chamber of Commerce, said in today’s economy, the drop-off in business license renewals wasn’t surprising.

In the past year, the chamber has lost more members than usual who either went out of business or chose not renew their membership, Dunlap said.

"Nobody likes to see anything less than what it was, particularly when we’re in a growth area," Dunlap said, adding "it would be interesting to compare (the decrease) to other cities of our size."

Ron Simmons, an area director for the University of Georgia’s Small Business Development Center, said many shuttered businesses "close with a whimper, not a bang."

"Unless you have a large plant closing, it doesn’t make the news, people just quietly close the door and go away," he said.

Simmons said some businesses are more affected by the economy than others.

"You have a number of businesses that ceased operation in the construction field, and maybe some real estate companies at the end of the year decided not to renew their license," he said.

Commenting on the 6 percent nonrenewal rate, Simmons said, "I’m surprised it’s not more than that."

It’s not just businesses that are closing that’s affecting the economy. Fewer are starting.

The SBDC’s Gainesville’s office, which covers a 12-county region, has seen a drop in new business starts of about 20 percent, Simmons said.

"People are saying ‘I don’t have the money right now,’ or ‘Things are a little scary,’" Simmons said. "When things are looking better (economically), it’s a whole lot easier to take risks."

Dunlap said she’s already seen hopeful signs of an economic turnaround, with a few "looks" from industry prospects.

She believes when "things get better, we’ll see a return of a good many more small businesses."

"That old American entrepreneurship will return," she said.

Some folks may not need to wait much longer to start planning a new business, Simmons said. Unemployment insurance benefits eventually run out, he noted.

"A lot of people are going to have to take a chance," he said. "When they get to the end of that unemployment, you’re going to see a lot of people being creative with their entrepreneurship."