Business closures and students: opportunities or mischances?

With K-Mart closing its doors, it joined the ranks of businesses throughout the valley, including nine business turnovers in Cache Valley Mall last year.

In light of many of these businesses employing college students or soon-to-be students, is this turnover creating an increasingly positive or detrimental atmosphere for Utah State University’s students?

Ryn Haubner is a music major specializing in viola performance, who also works as a server at a new local restaurant. The restaurant business is highly volatile, with many new restaurants not lasting more than a year. Since beginning work in May of 2015, she has had three different managers and seen price cuts to help bolster business.

“I am a server, and rely heavily on tips for income and my paycheck has suffered in several ways as a result of working for a new restaurant,” Haubner said. “My company has offered a number of lower-priced specials, which lowers the bill and therefore the tip that I receive.”

However, paychecks aren’t the only effects students see. With regard to work environment, Haubner said, “I have worked under three different managers who had individual methods and expectations, resulting in a need on my part to be adaptable.”

Despite changes in management, Haubner says overall that she has been treated very well and that she enjoys her job.

Brenden, who wished not to publish his last name, a student taking a hiatus this semester so that he can do door-to-door sales, also submitted that with high business turnover comes high employee turnover.

“When business slows, a lot of people quit. Students are required to take shifts when someone quits and are overworked because the business is understaffed and they need their job. It definitely affected me when I was going to school last semester when I was getting scheduled much more than I would like or could handle,” Brenden said.

Similarly, a student who prefers not to be named said, “I work for a business that is established. I don’t feel the effects of business closures, but I do feel like I’m paid less (hourly) than people at new companies and am forced to work more. I think established businesses can get away with that because they can guarantee that they’ll still be paying you in a year.”

However, some students are experiencing only benefits from the high business — and employee — turnover rate. Erin Gordon and her new husband, Matt, are a part of this group.

“Well, that’s how Matt got his job so that’s how it affected both of us,” she said.

Conservice, Matt’s employer, is “expanding exponentially” right now, opening up numerous jobs for students.

Conservice was founded in 2000 and has been able to defy Cache Valley’s high turnover rate, allowing it to thrive and expand while others try to stay afloat. This expansion makes a full circle by increasing employment opportunities for students within a well-established network that doesn’t require overworking them because of sporadic employment.

Another logical benefit students see is that for every business that closes, there becomes a spot for a new business. New businesses mean new services, employment opportunities, leadership and managerial positions.

However, new and local businesses also provide benefits that aren’t necessarily obvious. Dr. Stephan Goetz is a professor at Penn State who specializes in economic growth and regional economics. He is one of many who offers these less obvious benefits.

His main argument is that new and local businesses tend to use the services of other local businesses, which allows many of the local businesses to thrive. Having more local businesses integrated, there is more potential for employment and higher profits.

“The best strategy is to help people start new businesses and firms locally and help them grow and be successful,” Goetz said.

Either by creating new employment opportunities, overworking students, driving down pay or causing high management turnover, it is clear that Utah State’s working students cannot escape high business turnover unaffected.

— jack_brimhall@yahoo.com