What does the closure of beloved restaurants and music stores mean for small business in Minnesota?

The Twin Cities are witnessing the closure of several cherished businesses, including Annie’s Parlour and Homestead Pickin’ Parlor, primarily due to rising rents and retirement decisions. Annie’s Parlour, which served the Dinkytown community, closed on July 1 after announcing financial struggles on social media. Homestead Pickin’ Parlor, a key player in the local music scene for 46 years, will close on July 31, with founder Marv Menzel attributing the decision to a rent hike. The Minnesota Department of Employment and Economic Development reports that small businesses, defined as those employing fewer than 500 people, make up 99. 5% of all businesses in the state.

In a positive light, over 67,000 new businesses opened in Minnesota in 2024, marking a 50% increase since 2019. Despite these closures, the overall business climate in Minnesota remains robust, suggesting resilience among small enterprises. Experts emphasize that while these closures are unfortunate, they reflect broader economic trends impacting small business viability. The community's response to these closures indicates a strong connection to local businesses and a potential shift toward supporting new ventures.