Once the research problem was identified, the economic development team began developing a research strategy. Beginning with the criteria for research outlined by CHDC, the team identified the scope of research and the research methods. First the area of research was defined. Time constraints dictated that we could not study the entire CHDC target area. Outlining our research goals was the next hurdle. After a great deal of consultation and discussion, four research questions emerged as priorities (discussed later). Once the goals were identified, the team contemplated the most effective forms of answering the research questions. A multi-technique approach was developed, incorporating both quantitative and qualitative means. Through individual surveying and discussion with business owners as well as interviews with experts in the field of small business enhancement, we were able to finalize our strategy. Secondary resources and research supplemented our efforts. While we know that our research results cannot revitalize the economically depressed city of Newark, we feel that it is a foundation for the economic renewal of the CHDC target area. Our results indicate several islands of strength in the study area. This is an excellent place for CHDC to begin its revitalization efforts.
Most of CHDC’s target area is part of the poorest census tract in Newark. Conducting meaningful research in this economically disadvantaged community was a formidable task. The first steps required selecting a realistic research area and set of goals. After a great deal of thought and consultation, the team decided to focus its efforts on the main commercial corridors of CHDC’s target area. At the same time, we outlined a set of questions and goals that would provide CHDC with a comprehensive understanding of the current business conditions along the main commercial strips. A second focus of our work was to give the existing businesses a tool to help themselves. This product, a guide to financial and technical assistance, benefits both the business owners and the rest of the community. The work conducted on the two commercial corridors serves some of the businesses’ immediate needs and provides a framework for developing and achieving long-term goals. Ultimately, an improved business climate will greatly benefit the surrounding community.
Selection of Springfield and South Orange Avenues
This study focused on Springfield and South Orange Avenues, the primary commercial corridors in the target area. They form its northern and southern boundaries. Both enjoy a great deal of auto and pedestrian activity from neighborhood residents as well as through-traffic. Springfield Avenue connects Newark to the adjacent municipality of Irvington while South Orange Avenue joins it to the village of South Orange. Both Avenues bisect Newark and serve as throughways to a number of destinations in the city. This high visibility and heavy traffic creates the potential for local merchants to attract a regional market, expanding their own capacity and capital while attracting new businesses to the area. Springfield and South Orange Avenues are not the sole retail streets in the target area. Economic activity also takes place on 16th Avenue and 14th Street. However, Springfield and South Orange Avenues were selected because they offer the highest concentrations of commercial activity and are the most visible to residents and non-residents. Traditionally, these streets are the most utilized retail destinations in the neighborhood and, as we found in our research, contain a number of long-term, stable businesses. Finally, we selected the area because CHDC plans to initiate economic development efforts along these two corridors.
Limitations of this Study Area
The focus on Springfield Avenue and South Orange Avenue limits certain aspects of this study. As we mentioned above, there are other commercial pockets that may contain additional islands of strength in the target area. By excluding these businesses, we are unable to determine if the patterns outside the study area parallel the findings within the study area. Perhaps there is a very different lesson to be learned from the other commercial nodes. Another concern is that concentrated efforts to improve business conditions along Springfield and South Orange Avenues could inhibit the growth of the non-study area businesses. It is our hope that the findings and resources provided by this study will be shared with all businesses in the CHDC target area.
The research goals for this study were developed through interviews with CHDC staff, consultation with Project Community advisors, and written information about Newark and the study area. The goals were to examine: current economic conditions, land-use patterns, the commercial mix, attitudes of local business owners, programs to assist small business, and the shopping patterns of local residents. The objective was to gain a thorough understanding of existing conditions, identify key issues, and inventory community assets. This information forms the basis of our analysis and recommendations.
Currently, the level of economic activity in the research area appears inadequate to meet the needs of neighborhood residents and the anticipated needs of the new residents that CHDC hopes to attract. Improvements and new development will generate badly needed employment, increase housing construction, attract basic goods and service providers, and promote reinvestment in physical infrastructure. However, an analysis of these issues is outside the scope of this research. The economic development team therefore decided to research several basic questions that need to be addressed before CHDC can implement an economic development program. The team developed and researched the following questions:
Developing the tools to answer the four research questions was a critical step. The team agreed that an inventory of existing buildings, abandoned buildings and vacant land would be a valuable product for CHDC. The team also believed that developing an instrument to assess the state of existing businesses along each corridor was necessary. This land-use and business survey formed the basis of our research. The team agreed that one-on-one surveying was the best way to ensure an adequate response rate. Conducting personal interviews with business owners was also an excellent way to attain an understanding of the area. Walking the streets and engaging in informal discussions with residents, patrons, and merchants along each corridor made the data come alive. We found a very strong commitment to the community among business owners and patrons despite the challenging conditions in the area. The team also sought information about the businesses CHDC residents utilize and what goods and services were missing. The team worked with the residential development team, adding a business use and needs assessment question to their survey and assisting in its administration. Other information gathering techniques were used to answer our remaining research questions. Interviews were conducted with many of Newark’s small business experts and others involved in small business development. Overall, the various techniques enable us to offer a comprehensive study and product.
The economic development team developed a survey instrument that served two purposes. The first section (see Appendix A) enabled us to take an inventory of land-uses and conditions along each corridor. One page was used to record the address, business name, vacancy status, building condition, adjoining street condition, and crime prevention techniques. Building and land-use conditions were rated on a scale from "good" to "bad". This information was used to create a database and geographical information system (GIS) for CHDC. Over 300 inventories were completed in the course of this study. They enabled us to record a great deal of information about the physical state of Springfield and South Orange Avenues.
The second section of the survey was a business assessment conducted with the business owner or manager. Over 70% of the time, the surveyor spoke to the owner. This section was used to gather information about the residence of business owners and employees, length of ownership, and the current financial state of the business. This instrument also gauged crime, labor, and financial/insurance issues faced by each business. It was also designed to provide an indication of the business’ interest in becoming involved in CHDC’s economic revitalization efforts. The cumulative effect of this survey instrument was to allow the team to measure the level of involvement and interest in the CHDC neighborhood. An analysis of the information gave our team the title and main theme of this report: Islands of Strength, Reasons for Hope.
Time constraints prevented the economic development team from gaining a comprehensive understanding of residents’ utilization of businesses in the study area. The one question added to the residential development team’s survey of CHDC residents gave us a glimpse of the residents’ shopping patterns and an understanding of what was missing from these corridors. The sample size was quite small and the results are not necessarily representative of the entire target area. For additional information on CHDC residents, see Volume 3.
Additional techniques were used to answer the remaining research questions and supplement the study. A business assistance guide was created as an immediate resource for business owners. The team focused on several types of business assistance programs including: the Enterprise Zone, local and regional merchants associations, business planning and consulting agencies, loan and grant programs, seminars and training for business owners, and additional resources available in Newark. Our focus was limited to assistance programs in the Newark area. The Guide to Local Business Assistance Programs (see Appendix C) was compiled through a series of interviews with key business development professionals on the local, city, and state levels. Additional literature about programs and organizations was reviewed in the course of writing this guide. Secondary sources were utilized throughout this study to gain an understanding about the economics and dynamics of the Newark region and other struggling inner-city neighborhoods. Literature on a variety of related topics was found in periodicals, journals, and research reports.
Limitations of Research Methods
All research methods have limitations and this study is no exception. The survey instrument was designed to provide information in a variety of areas. It does not offer any conclusive solutions for CHDC; it merely offers a beginning. The number of businesses surveyed represented only about 30% of the total businesses and lots inventoried. Time constraints prevented us from following up with businesses that were closed or too busy at the time of our initial visit. The personal interviewing process creates a form of bias not found in other surveys. The interviewer cannot relate to every merchant in exactly the same way. Questions about the definition of certain terms are not always delivered in a precise and consistent manner.
In terms of administering the survey and processing its information, several errors were introduced. One flaw in the survey design was that the lots identified in the physical survey do not conform to the city’s tax maps. Additionally, coding errors occasionally take place in the course of a survey. Finally, the use of GIS to map data adds an additional source of error, since the mapping process sometimes will place survey data points in the wrong locations. However, GIS was an appropriate tool to track general spatial trends.
Other inaccuracies that occur in this study may be found in the residential analysis. The results do not represent the views of the entire target area, and may not represent the views of CHDC residents. Finally, the additional research methods are flawed. Personal interviews do not always uncover all pertinent information, while secondary research may produce outdated information.
The economic development team has produced a written report, a database connected to a geographical information system, and a directory of business assistance programs. Our research, findings, and recommendations will be presented to CHDC. The Guide to Local Business Assistance Programs will be distributed by CHDC staff to businesses that participated in the survey and other interested businesses. They will also have the ability to update the guide and/or print additional copies. These products answer the economic development team’s questions and satisfactorily answer the research goals.
SIGNS OF STRENGTH, REASONS FOR HOPE: RESULTS OF THE ANALYSIS
In this section, we will discuss the results of the inventory of physical conditions and the survey of businesses on Springfield and South Orange Avenue between Bergen Street and 20th Street/Irvington border. Both streets are still major transportation corridors, with New Jersey Transit bus services linking the area to a customer base that extends outward to the greater Newark area. The economic development team spent over 100 hours assessing these two commercial corridors. A total of 307 physical inventories and 51 in-depth surveys were completed (See Appendix E for survey points).
Our interaction with the business community left us with a very positive perception of the strength of their commitment to the community, which exists despite the many obstacles business people confront on a daily basis. Some of these obstacles are: low median family income, high rate of unemployment, high poverty rate, the decline of housing stock, and the "Newark Mystique." This last factor, the perception of Newark as one of America’s most dangerous cities, has stigmatized the community and has consequently deterred reinvestment.
Of 154 existing businesses, a total of 51 completed the in-depth survey, for a 30% response rate. The majority of unsurveyed businesses were closed at the time of the survey. Of the 51 in-depth surveys that were completed, 70.6% were completed by the owner of the business. Overall, business operators were receptive to the survey and only a small minority refused to participate.
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