Federal worker layoffs | Fayetteville small businesses feel the impact of the government shutdown – ABC11

Economic Impact of Government Shutdown on Fayetteville’s Local Economy and Sustainable Development Goals

Disruption to Local Economic Stability and SDG 8

A federal government shutdown is causing significant economic disruption in Fayetteville, North Carolina, directly impacting the community’s progress towards Sustainable Development Goal 8 (Decent Work and Economic Growth). The local economy, which supports thousands of federal employees residing in Cumberland County, is experiencing a severe slowdown. The reduction in consumer spending by these employees has led to a sharp decline in revenue for local small businesses, threatening the sustained and inclusive economic growth of the area.

• Reduced patronage at restaurants and retail establishments.
• Decreased daily sales figures, cutting into the bottom line of small enterprises.
• Increased economic uncertainty for business owners and their employees, jeopardizing decent work.

Challenges to Small Business Viability and SDG 1

The financial strain on local entrepreneurs highlights challenges related to Sustainable Development Goal 1 (No Poverty), as the shutdown threatens the livelihoods of business owners and their staff. The loss of income and potential for business failure increases economic vulnerability within the community.

1. Restaurant owner Keith Bowen reported record-low customer numbers, with patronage dropping to as few as four tables on a weekday.
2. To stimulate business, Bowen has implemented promotions at a financial loss, a measure taken to maintain operational continuity and prevent job losses.
3. Other business owners, such as Elaine Kelley of Turner Lane, are also experiencing slower sales, reflecting a widespread economic impact that could push vulnerable households closer to poverty.

Implications for Community Resilience and SDG 11

The economic downturn poses a direct threat to Sustainable Development Goal 11 (Sustainable Cities and Communities). The viability of local businesses is fundamental to the economic and social fabric of Fayetteville. A prolonged shutdown could inflict lasting damage on the city’s local economy, undermining its resilience and sustainability.

• The shutdown weakens the local economic base that is essential for a vibrant and sustainable urban community.
• The potential for permanent business closures could lead to a decline in local services and amenities.
• The situation underscores the vulnerability of communities that are heavily reliant on federal employment and the need for diversified economic structures to enhance resilience.

Call for Effective Governance and SDG 17

Local business owners are urging lawmakers to reach a resolution swiftly. This call for action aligns with the principles of Sustainable Development Goal 17 (Partnerships for the Goals), which emphasizes the need for effective institutions and stable governance to achieve sustainable development. A resolution is considered critical to prevent further economic harm and to restore an environment where local businesses can thrive and contribute to the community’s sustainable development objectives.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

   The article highlights economic hardships faced by a local community due to a government shutdown, directly connecting to several Sustainable Development Goals that focus on economic well-being, stable employment, and community resilience.

   • SDG 1: No Poverty

     The economic slowdown directly impacts the income of small business owners and, by extension, their employees. The article mentions business owners are “struggling to weather a slowdown that is cutting into their bottom line” and are taking losses just to “keep these lights on.” This financial instability can push individuals and families towards poverty. The linked article about the food bank seeing “rising need” further reinforces the connection to poverty and food insecurity.

   • SDG 8: Decent Work and Economic Growth

     This is the most prominent SDG in the article. The core issue is the disruption of local economic growth due to the shutdown. The article details how small businesses are experiencing “record-low numbers” and “slower sales,” which is a direct threat to sustained and inclusive economic growth. The struggle of “small business owners” and entrepreneurs like Keith Bowen directly relates to the goal of supporting small and medium-sized enterprises.

   • SDG 11: Sustainable Cities and Communities

     The article focuses on the impact on “downtown Fayetteville” and the fear of “lasting damage on the city’s local economy.” This connects to the goal of making cities and human settlements inclusive, safe, resilient, and sustainable. The economic health of downtown businesses is crucial for the overall vitality and resilience of the urban community.

2. What specific targets under those SDGs can be identified based on the article’s content?

   Based on the issues discussed, several specific SDG targets can be identified:

   • Under SDG 1 (No Poverty):

     • Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty. The economic shock from the shutdown threatens the livelihoods of federal employees and small business owners, potentially increasing the number of people experiencing economic hardship and poverty in the community.

   • Under SDG 8 (Decent Work and Economic Growth):

     • Target 8.2: Achieve higher levels of economic productivity through diversification… and innovation. The article shows a negative trend in economic productivity, with a restaurant owner reporting “record low” customer numbers, indicating a sharp decline in local economic activity.
     • Target 8.3: Promote development-oriented policies that support productive activities… and encourage the formalization and growth of micro-, small- and medium-sized enterprises. The article’s focus on the struggles of a “new restaurant owner” and other “shop owners” highlights the vulnerability of small enterprises to external shocks like a government shutdown, undermining this target.

   • Under SDG 11 (Sustainable Cities and Communities):

     • Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning. The article illustrates a failure in this area, where a national-level political issue (the shutdown) directly severs positive economic links within an urban area (downtown Fayetteville), causing significant harm to the “city’s local economy.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

   The article provides several direct and implied indicators that can be used to measure the economic impact and progress towards the identified targets.

   • Indicators for SDG 1 & 8:

     • Decline in Business Revenue: This is directly mentioned as businesses are “cutting into their bottom line” and experiencing “slower sales.”
     • Customer Traffic/Volume: A specific, quantifiable indicator is provided by the restaurant owner: “we had maybe four tables. Thursday, we probably served 20 people.” This measures the decline in business activity.
     • Business Survival Risk: The statement “we need people to come help us keep these lights on” implies a risk of business closure, which is a key indicator of economic health.
     • Unemployment Claims: The article links to another story about a “spike” in “unemployment claims,” a formal economic indicator related to job security and economic distress.
     • Demand for Social Assistance: The linked article about the food bank seeing “rising need, empty shelves” is a strong indicator of increased poverty and food insecurity in the community.

   • Indicators for SDG 11:

     • Health of the Local Economy: The overarching concern about “lasting damage on the city’s local economy” serves as a broad indicator for the economic resilience of the city. The performance of downtown businesses acts as a proxy for this indicator.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article. In this table, list the Sustainable Development Goals (SDGs), their corresponding targets, and the specific indicators identified in the article.

   SDGs	Targets	Indicators
   SDG 1: No Poverty	1.2: Reduce the proportion of people living in poverty.	Increased demand for food bank services (implied by linked article). Decline in income for business owners (implied by “cutting into their bottom line”).
   SDG 8: Decent Work and Economic Growth	8.2: Achieve higher levels of economic productivity. 8.3: Promote policies that support small and medium-sized enterprises.	Decline in business revenue and sales (“slower sales”). Low customer numbers (“four tables,” “20 people”). Risk of business failure (“keep these lights on”). Spike in unemployment claims (mentioned in linked article title).
   SDG 11: Sustainable Cities and Communities	11.a: Support positive economic links by strengthening national and regional development planning.	Negative impact on the city’s local economy. Struggles of downtown businesses as a measure of urban economic health.

Source: abc11.com