In one of last year's issues of the Russkaya Reklama, we printed a piece analyzing the difficult situation taking shape in the realm of Russian-owned businesses in the United States at the height of the economic crisis.  

What has changed since then? Has the situation for Russian businesses improved and, if so, which ones in particular? Which methods for combating the crisis are favored among our business people? Who aids them in this difficult struggle? What are the prospects of the firms, founded by Russian-Americans?  

We asked well-known and active members of our community to answer these and other questions.  

"Rumor has it that Russian businesses are recession-proof," says John Lisyanskiy, assistant to the New York City Council Speaker. "In practice, however, the saying is unfortunately false. Our businesses are experiencing difficult times – banks are closing credit lines, renting space has become more expensive, the number of costumers is decreasing."  

According to Lisyanskiy, government programs and agencies designed to help small businesses rarely go out of their way to do so – the owners of small companies are complaining these organizations have provided a great deal of bureaucratic red tape, but no real support. "So, Russian-speaking businessmen rarely turn to these agencies," says Lisyanskiy, "Besides, as immigrants from a communist empire, they regard the government with wariness, preferring to borrow money from relatives, and friends."

Lisyanskiy is certain that only those businessmen who are not afraid to experiment, to implement innovations, and to develop original methods for attracting consumers will be able to survive these conditions.

Ilya Levkov, founder of the legendary Liberty Publishing House, commented on the situation for his business. "Unfortunately, books are not considered necessities and unlike food or medication, people who have decided to limit their spending or curtail the family budget can easily stop buying them," says Levkov, "So, books are selling poorly. However, a new trend has appeared in Russian-language publishing; many of our immigrants are writing memoirs, detailing their immigration stories. These memoirs are a sequel to the Passover Aggadah and are included into it, published as one book. That is, the traditional narrative of the Jewish exodus from Egypt as it parallels the exodus of a given Russian-speaking family from the U.S.S.R." 

Eric Piker, owner of "Eric's Health Food Shoppe," also discusses the need for experimentation and boldly venturing forward. "Russian stores, especially grocery stores, are experiencing difficulties," explains Eric. "From my perspective, this is because many of the owners are not running their businesses correctly. In order to become successful, they should specialize in certain merchandise, offer their clients new and exclusive European products that they can now find even in America, analyze and make use of all the information afforded them by the Internet. Instead, the proprietors of Russian stores lower their prices, offer the same products, deal with the same Russian wholesalers and, sometimes, steal ideas from more successful competitors. Not only are they not achieving the success they seek, but they are interfering with other, more talented businessmen."  

Yelena Makhnin, executive director of the Brighton Beach Business Improvement District, has yet to see any improvement in our market. "Many different Russian companies are going out of business," she says, "not because they aren't conducting their businesses properly, but because leasing space, municipal services, and wholesale goods are becoming more costly.  For example, as a result of the increased cost of leasing a space, a company as familiar to Brighton as the café Arbat went out of business. In addition, everything is interconnected; when one sphere of business suffers, it drags others down with it. For example, a decline in the construction industry weakens companies that sell products necessary for construction; a decline in real estate has a negative impact on furniture retailers and so on."  

Mark Davidovich, owner of Seaside Car Service and Democratic leader of New York's 46th district, agrees with Makhnin. "We're holding on, but times are very tough for car services right now," he says, "Business has fallen by 35 percent. The reason is simple – people don't have money and prefer to use public transit. I frequently see my former costumers at bus stops. In addition, many businesses that used to make use of our services have shut down."  

According to Davidovich, the city's administration does the car service industry a disservice. "Now our government wants to legalize livery cabs pick-ups in Brooklyn and other boroughs," he says, "Not only will this hurt our business, it is dangerous to our drivers. The president of the Livery Coalition, with whom I have met on several occasions, agrees with me on this matter. We should not be experimented upon; it is important to seriously research and consider the issue at hand before implementing changes."  

Oleg Gutnik, prominent doctor in the community, is more optimistic. "Healthcare is the only industry that took on additional employees in 2010," he says. "Russian-speaking doctors and medical offices are no exception. This is especially pertinent to medical offices in New York, which have an effective system of government programs with which the majority of Russian doctors cooperate. So people from the most disparate social groups, and even the unemployed, can allow themselves the 'luxury' of a trip to the doctor."  

Nevertheless, according to Gutnik, the income of the medical industry has dropped. In particular, income from preventive medicine has decreased by 15 percent. People with chronic and acute diseases cannot avoid going to the doctor, but preventive visits and tests are being put off.  

Alec Teytel, president of the Bensonhurst Business Club, is also full of hope. "Some improvement with regards to Russian businesses has certainly been observed," he says. "We haven't returned to the level of success we had in 2006, but business has remained steady and that is a good thing."  

According to Teytel, the Russian businesses that suffered as a result of the economic crisis were primarily those offering luxury items – jewelry stores, boutiques, spas, stores where one could purchase expensive clothing, shoes and furniture. "Russian-speaking Americans, as is well-known, do not reward poor-quality products and so, until the crisis, businesses offering luxury goods saw a great deal of success. However, now that people are finding it more difficult just to make ends meet, money is no longer spent on luxuries and many of these stores are going out of business. On the other hand, the restaurant business has found conditions somewhat improved as people begin to frequent them as they did before, though probably to interact more than to feast." 

Teytel believes that, on the whole, we will be able to speak of improvement in the Russian sphere of business in the United States when our businessmen begin hiring additional employees. "An increase in hiring is the best indicator of success; this will come to pass in time, when the products being offered are, once again, in demand."  

A new situation has unfolded in the sphere of jurisprudence. Immigration lawyer Tatiana Pahman is certain that there are more Russian law offices in New York than there were before the crisis. In particular, our young people, graduates of prestigious law schools, are opening their own offices. However, only the best of the best will survive in the present market.  

"Not all spheres of law have suffered equally," says Tatyana, "Of course, there are fewer corporate lawyers, there are fewer big contracts to be had. There are also fewer lawyers in the realm of real estate. On the other hand, there is more work for legal experts specializing in bankruptcy. Also, there is more work for family lawyers; during times of economic crisis, there are significantly more divorces than during times of prosperity. Things have also become more difficult for immigration lawyers; they have come across new, more complicated problems. For example there are cases involving people who sought political asylum and were denied, but stayed in America, formed families, and now, after many years, are applying for green cards as the spouses of American citizens. These days, not every lawyer dares to take such cases."  

According to Pakhman, an interesting trend has emerged as people refer all their problems to just one lawyer whom they trust and who has proved that he can really assist them. So our lawyers must learn to be jacks-of-all-trades.  

Alec Teytel and John Lisyanskiy believe that during times of crisis, Russian businesses need to unite and support one another. The first steps in that direction have already been taken. According to Teytel, the Bensonhurst Business Club, which is trying to assist Russian business people, is prepared to stage a competition for the best business proposal in conjunction with the Brooklyn Business Library. The winner will receive $25,000.  

John Lisyanskiy indicated that the Russian-speaking businessmen of New York are preparing to hold a summit where the most successful among them will give advice and offer assistance to those who are experiencing difficulties. A meeting of businessmen on that scale provides a forum to share experiences, find new and unexpected partners, and discover new ideas. Such unity brings hope that our businessmen will survive the crisis and achieve success.