**Impacts of Rising Rents on Small Businesses in Tijuana**
The escalating cost of renting commercial spaces in Tijuana has been significantly affecting small businesses, with many struggling to keep up and some even being forced to close down. This was highlighted by Gina Villalobos, the president of the National Chamber of Small Commerce (Canacope) of Tijuana.
Villalobos explained that rental costs have surged over the last year. Additionally, the requirements to open small businesses have become more stringent, a development that has added to the burden on small business owners. For instance, commercial centers now mandate insurance coverage from financial companies. This requirement includes general liability insurance and property damage insurance, aimed at mitigating the risks faced by property owners should businesses fail and tenants leave without paying rent.
She further indicated that in scenarios where tenants leave without paying, property owners must resort to eviction proceedings, which can be costly for both parties. These rising rents and new requirements are shrinking the pool of potential entrepreneurs who can afford to rent established commercial locations.
Due to these challenges, many small business owners have migrated to informal sectors, opting to operate out of their homes or other non-traditional spaces. The pandemic’s aftermath has also seen an increase in street vendors, further complicating the business landscape for formally established merchants.
The challenges faced by small business owners in Tijuana are not merely financial but also procedural, owing to increased regulation and requirements that seem prohibitive to many. Consequently, the membership of Canacope has seen a decline, reflecting the difficulties new entrepreneurs face in sustaining their businesses in a formal setting.
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**Secondary Article**
**Small Businesses Struggle Nationwide Amid Rising Rental Costs**
The situation faced by small businesses in Tijuana mirrors a broader trend seen across various regions. A recent report revealed that increased rental costs and regulatory burdens are causing similar difficulties for small business owners throughout the country.
In [City/Region], small business owners report that rental costs have increased by approximately 15% over the last year, making it more challenging to maintain profitability. Furthermore, new regulations demand additional insurance policies and compliance with stricter safety and operational standards. This has led to higher operational costs, pushing many small entrepreneurs to consider or transition to informal markets.
One business owner stated, “The new insurance requirements are particularly tough. Small businesses already operate on thin margins, and these added costs can be the tipping point that makes it impossible to stay open.”
Organizations advocating for small businesses are calling for policy changes that could alleviate these pressures. Proposed measures include rent control, subsidies for small businesses, and simplified regulatory processes to encourage entrepreneurship and sustain existing small enterprises.
The economic climate remains uncertain, and without significant intervention, the trend of small businesses closing down may continue, further impacting the local economies and community landscapes.
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