Small Business Profitability Strategies During Retail Gentrification

Small Business Profitability Strategies During Retail Gentrification by JaLysa N. Smith MS, Troy University, 2012 BS, Alabama State University, 2010 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University July 2017 Abstract Small business owners can suffer fluctuations in profitability during the entrance of big box stores within their neighborhood that grab market share with more recognizable brands and change the retail environment. A multiple case study was completed to explore the strategies small business owners use to stay profitable during retail gentrification, looking specifically at the neighborhoods of Adams Morgan and Congress Heights in Washington, DC. Porter's five forces and the resource-based view served as the conceptual framework for the study. Seven small business owners with over 80 years of experience in their locations provided input through semistructured interviews and identified effects of gentrification on their neighborhoods and strategies they used to combat retail gentrification. The thematic approach to data analysis was used to organically code the data based upon reoccurring themes. As a result, 5 strategies were identified within the data: pricing, advertising, customer acquisition, shopkeeper mentality, and neighborhood engagement. The results of this study might provide small business owners with a toolkit of strategies to assist in staying profitable during a time of change. The implications for social change include the potential for maintaining small business profitability during gentrification, encouraging entrepreneurship, employing local residents, and retaining the authentic culture of the neighborhood.Small business owners can suffer fluctuations in profitability during the entrance of big box stores within their neighborhood that grab market share with more recognizable brands and change the retail environment. A multiple case study was completed to explore the strategies small business owners use to stay profitable during retail gentrification, looking specifically at the neighborhoods of Adams Morgan and Congress Heights in Washington, DC. Porter's five forces and the resource-based view served as the conceptual framework for the study. Seven small business owners with over 80 years of experience in their locations provided input through semistructured interviews and identified effects of gentrification on their neighborhoods and strategies they used to combat retail gentrification. The thematic approach to data analysis was used to organically code the data based upon reoccurring themes. As a result, 5 strategies were identified within the data: pricing, advertising, customer acquisition, shopkeeper mentality, and neighborhood engagement. The results of this study might provide small business owners with a toolkit of strategies to assist in staying profitable during a time of change. The implications for social change include the potential for maintaining small business profitability during gentrification, encouraging entrepreneurship, employing local residents, and retaining the authentic culture of the neighborhood. Small Business Profitability Strategies During Retail Gentrification by JaLysa N. Smith MS, Troy University, 2012 BS, Alabama State University, 2010 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University July 2017 Dedication I am dedicating this study to my entire support system who has helped me throughout this journey. Specifically, to my mother, father, and brother – thank you for your encouragement, patience, and support. I could not have done it without you. Acknowledgments I would like to thank my Chair, Dr. Cheryl McMahan, for supporting me and pushing me throughout this study. Her responsiveness and happy demeanor continually allowed me to feel that I could complete this journey. Dr. Denise Handy, my Second Chair Member, was amazing throughout the process continuously turning moving this document forward and preparing me for the next step. To my committee, I am forever grateful.