Beyond Ribbon Cuttings: Are Compton’s New Businesses Surviving and Growing?

Ribbon cuttings are important. They introduce new businesses, create public visibility, bring customers through the door and celebrate the entrepreneurs willing to invest their time, savings and energy in Compton.

The opening of a new restaurant, retailer, service provider, manufacturer or professional office deserves recognition.

But a ribbon cutting records only one moment: the beginning.

The more meaningful economic-development questions come later.

Is the business still operating after one year? Has it retained or increased employment? Has it expanded its products, services or facilities? Is it purchasing from other Compton businesses? What obstacles has it encountered? What assistance could help it remain and grow?

Compton should not measure economic progress only by the number of businesses that open. It must also track how many survive, expand and become permanent parts of the city’s economic base.

Opening Is Only the First Milestone

A grand opening creates excitement, but the months that follow are often the most difficult period in a company’s development.

New businesses must establish a dependable customer base while managing rent, payroll, insurance, utilities, taxes, inventory, permits, marketing and unexpected operating costs.

Many owners also discover that revenue can grow more slowly than expenses.

National business-survival data show why follow-up matters. According to the U.S. Bureau of Labor Statistics, roughly four out of five new private-sector establishments survive their first year. About half remain in operation after five years, and approximately one-third reach ten years.

Those are national patterns, not Compton-specific results. Compton currently needs its own local measurements.

Without local data, the City and Chamber cannot determine whether Compton businesses are performing better or worse than broader trends—or which local conditions most strongly influence survival.

What Happens After the Photographs?

Compton has welcomed several visible business openings, including locally owned establishments and additional locations of established chains.

For example, Let’s Eat Soul Food Restaurant opened on West Compton Boulevard in March 2026 with a Chamber ribbon cutting. Yoshinoya opened its second Compton location on North Long Beach Boulevard in February 2026.

These openings contribute to the city’s restaurant and retail economy. They also present an opportunity to establish a better follow-up system.

At six months, one year and each year thereafter, the Chamber should reconnect with newly opened businesses to learn:

• Whether the business remains open;

• Whether ownership has changed;

• How many people it employs;

• Whether employment has increased or declined;

• Whether revenue is growing, stable or declining;

• Whether the company plans to expand;

• What problems it has encountered;

• What type of assistance it needs; and

• Whether it would recommend Compton to another business.

The purpose is not to inspect or embarrass businesses. It is to understand what helps them succeed and intervene early when preventable obstacles emerge.

Compton Needs a Business Vitality Dashboard

The City should create an annual Compton Business Vitality Report or public dashboard.

The dashboard could track:

• New business licenses issued;

• Active business licenses;

• Business-license renewals;

• Closed or inactive businesses;

• New businesses by industry;

• New businesses by corridor or district;

• One-year survival;

• Three-year survival;

• Five-year survival;

• Estimated employment;

• Vacant commercial storefronts;

• Commercial occupancy;

• Business expansions;

• Businesses relocating into Compton;

• Businesses leaving Compton; and

• Major employer openings, expansions and closures.

The dashboard should present trends rather than only a single annual total.

For example, reporting that several hundred new licenses were issued means little without knowing how many represent genuinely new businesses, independent contractors, home-based operations, ownership changes or temporary activity.

Similarly, a license that has not been renewed may indicate closure, relocation, a legal restructuring or incomplete City records.

Good reporting requires careful definitions and periodic verification.

Begin With Existing City Records

Compton already collects information through its business-license and permitting processes.

Those records can provide the foundation for a business-tracking system, but they should be organized for economic-development purposes rather than used only for tax administration and regulatory compliance.

The City is able to identify:

• Business name;

• Address;

• Opening or licensing date;

• Industry;

• Ownership type;

• License status;

• Number of employees, when reported;

• Major permits;

• Ownership or address changes; and

• Closure or relocation date, when known.

Private tax information, personal data and confidential business records must be protected. A public dashboard can report aggregate information while allowing authorized economic-development staff to conduct appropriate individual follow-up.

Not All Businesses Are the Same

Business survival should be evaluated by industry and business type.

A home-based consultant operates under very different conditions from a restaurant, manufacturer, childcare provider, retailer or logistics company.

Compton should distinguish among:

• Storefront businesses;

• Industrial and manufacturing companies;

• Restaurants and food businesses;

• Professional services;

• Construction contractors;

• Home-based businesses;

• Mobile businesses;

• Nonprofit service providers;

• National chains;

• Franchises;

• Independent local businesses; and

• Major employers.

This would help the City identify where businesses are succeeding and where additional support may be needed.

If restaurants consistently close because of buildout costs or permitting delays, that requires one response. If manufacturers leave because of facility limitations, workforce shortages or security concerns, that requires another.

Survival Alone Is Not Enough

A company can remain open without becoming financially secure or producing substantial local economic value.

Compton should therefore measure business growth as well as survival.

Indicators could include:

• Employees added;

• Wages increased;

• Additional locations opened;

• Larger facilities occupied;

• Equipment purchased;

• Revenue growth;

• New contracts obtained;

• Ownership of commercial property;

• Increased local purchasing;

• Apprenticeships or internships created; and

• Products sold outside the local market.

A business that grows from two employees to twelve is an economic-development success even if it never holds another ribbon cutting.

Likewise, an established company that remains in Compton and reinvests in its facility may create more economic value than a highly publicized opening that closes within a year.

Retaining Major Employers Matters Too

Business retention is not limited to small storefronts.

In 2025, International Paper announced the closure of its Compton facility, affecting approximately 125 workers.

A closure of that size can eliminate more jobs than several small ribbon cuttings create.

Compton must therefore maintain regular communication with major employers and industrial businesses. City and Chamber representatives should know which companies are:

• Expanding;

• Contracting;

• Considering relocation;

• Facing lease expirations;

• Experiencing workforce problems;

• Needing additional power or infrastructure;

• Encountering permitting delays; or

• Considering the purchase or sale of a facility.

Economic development should not learn that an employer is leaving only after a formal closure announcement.

Establish a Business Retention and Expansion Program

The City and Chamber should jointly establish a structured Business Retention and Expansion program.

The program should include scheduled confidential visits with local employers to identify needs, risks and opportunities.

A standard conversation could address:

• Current employment;

• Expected hiring or reductions;

• Facility needs;

• Lease or property concerns;

• Permitting and inspections;

• Utility capacity and cost;

• Public safety;

• Workforce recruitment;

• Access to financing;

• Procurement opportunities;

• Transportation;

• Plans for expansion or relocation; and

• Overall experience operating in Compton.

Concerns should be assigned to the appropriate City department or partner organization, with follow-up dates and responsibility clearly recorded.

This is not preferential treatment. It is basic economic-development customer service.

Support Should Continue Beyond Opening Day

Business owners frequently receive attention while preparing to open, followed by limited contact once the ceremony ends.

A better system would provide structured follow-up at:

• Three months;

• Six months;

• One year;

• Two years;

• Three years; and

• Five years.

Assistance could include:

• Marketing and customer development;

• Bookkeeping;

• Cash-flow management;

• Tax preparation;

• Digital commerce;

• Licensing and compliance;

• Procurement readiness;

• Access to capital;

• Lease education;

• Employee recruitment;

• Insurance guidance;

• Security assessments;

• Succession planning; and

• Connections with other local businesses.

Owners should know whom to contact before a manageable problem becomes a reason to close.

Ribbon Cuttings Should Create a Business Record

Every Chamber-supported ribbon cutting should begin a long-term business relationship.

The Chamber could create a file for each participating business containing:

• Opening date;

• Ownership and contact information;

• Business sector;

• Number of employees;

• Business goals;

• Immediate needs;

• Referral history;

• Follow-up dates; and

• Growth milestones.

With the owner’s permission, the Chamber could publish anniversary updates at one, three and five years.

These follow-up stories would provide valuable publicity while allowing the community to celebrate endurance and growth—not only opening day.

Celebrate Anniversaries and Expansions

A mature business economy should recognize more than new arrivals.

The Chamber should regularly celebrate:

• First anniversaries;

• Five-, ten- and twenty-year milestones;

• Facility expansions;

• New product launches;

• Major contracts;

• Employment growth;

• Property purchases;

• Ownership transitions;

• Successful family-business succession; and

• Longstanding service to the community.

Established businesses have already demonstrated commitment to Compton. Their experience can also teach newer owners how to survive local and regional economic changes.

Why Businesses Close

Closure should not automatically be treated as failure.

An owner may retire, sell the business, move to a larger location, accept employment elsewhere or close for personal reasons.

Other closures may result from:

• Insufficient customer demand;

• High rent;

• Lack of working capital;

• Rising insurance or utility costs;

• Poor location;

• Crime or property damage;

• Permitting problems;

• Workforce shortages;

• Partnership disputes;

• Health challenges;

• Loss of a major customer; or

• Broader industry changes.

An exit interview can help distinguish among these causes.

When a business closes or leaves Compton, the City or Chamber should respectfully ask why. Patterns across multiple businesses can reveal conditions requiring policy or program changes.

Track Local Economic Capture

Businesses generate greater community value when their activity circulates within Compton.

The City’s business-tracking system should therefore examine:

• Compton residents employed;

• Local suppliers used;

• Compton contractors hired;

• Commercial property occupied;

• Sales and other local revenue generated;

• Youth internships provided;

• Community partnerships established; and

• Ownership retained locally.

A company can operate in Compton while purchasing most services elsewhere and employing few residents. That business still contributes value, but the city may be capturing only a small portion of its potential economic benefit.

Tracking local purchasing and hiring can identify opportunities to strengthen connections among Compton businesses.

Create a Local Business-to-Business Network

Many companies operating in Compton may not know what other local businesses can provide.

A manufacturer may purchase printing, catering, maintenance, security, transportation or professional services from firms outside the city simply because it cannot identify qualified Compton vendors.

The Chamber can help build a searchable local supplier directory covering:

• Construction and repair;

• Food and catering;

• Printing and signs;

• Transportation;

• Janitorial services;

• Security;

• Marketing;

• Accounting;

• Legal services;

• Technology;

• Staffing;

• Equipment maintenance; and

• Other business needs.

Business survival improves when local companies become customers of one another.

Economic Development Requires Honest Measurement

Compton should celebrate every responsible entrepreneur willing to invest in the city.

But celebration cannot replace measurement.

A photograph of a ribbon being cut does not reveal whether the business will survive, how many jobs it will create, whether its owner is building wealth, or how much economic activity will remain in Compton.

Those results emerge over time.

A serious economic-development program should be able to answer:

• How many businesses opened?

• How many remained after one, three and five years?

• How many grew?

• How many jobs were created or retained?

• Which industries performed best?

• Why did businesses close or leave?

• What assistance produced measurable results?

• How much local purchasing occurred?

• What did the City learn?

• What will be changed?

The Ribbon Cutting Should Be the Beginning

Compton needs new businesses, and ribbon cuttings will remain an important way to welcome them.

But the ceremony should mark the beginning of the City’s and Chamber’s relationship with a business—not the conclusion.

The real measure of economic-development success is not how many ribbons are cut.

It is how many businesses remain open, become profitable, employ residents, purchase locally, expand, build ownership and contribute to Compton year after year.

Compton should celebrate the opening.

Then it should stay connected long enough to celebrate the growth.