CJS Decision 2024

In Chinatown, many business owners are aging, and do not have succession plans. Members of the new generation are leaving the community to pursue their careers, leading to further loss of Chinatown lifelong businesses and risking the erosion of the neighborhood’s culture and identity.

Gary Lum, 70, and his wife had considered selling their family business a few years ago, when his wife's parents fell ill. Wing On Wo & Co is not just an ordinary boutique, it is a family heirloom with over 100 years of history as a cherished porcelain store. “My mother-in-law took over the business in 1965. Her dad passed the business along”, Gary explained before adding, “you're standing in the middle of both our work and family living-room”. As they were about to sell, his youngest daughter Mei, 34, who represents the 5th generation, decided to take over the business in 2015 with her grandmother's blessing. She learned to run the business the same way, “from soup to nuts”. “My daughter's the boss”, Gary said with a proud smile. 

Gary Lum in his family business Wing On Wo & Co by Ana Castelain

Generation-to-generation transmissions like the one at the Wing On Wo & Co store are becoming increasingly rare in Chinatown. Although the neighborhood is one of New York City's iconic areas, renowned for its unique cultural heritage, a quarter of its population is over 65 and many have no succession plans. In 2022, 22% of Chinatown merchants have been in business more than 21 years according to a study conducted by NYC Small Business Services. Losing this kind of legacy could lead to the loss of the neighborhood's identity and cultural roots. “If I had moved out of the community, I would have lost my language. I would have lost my connection with my culture,” Gary said with emotion in his voice. 

Gary said out of all the people he grew up with, he now knows “less than a handful of persons that carried on businesses”. Another business owner, who prefers to remain anonymous, wasn't as fortunate as Gary. Mrs Zhang, one of the store's customers, translated his story into English. His daughter, having made her career elsewhere, will not inherit the store. “He prefers to read and wait for retirement before selling,” translated Mrs Zhang. 

Gary explained that immigrants work so hard and struggle, that they want an easier life for their offspring. For him, it is more a search for identity for the new generations. “Being Chinese-American, you want to fit in more than someone who is not a minority. So you try even harder,” said Gary. And for him, having an “esteemed” career is a way of finding that sense of belonging.  “My other daughter works for Google”, he added.

There are some solutions being used to compensate for this loss of lifelong businesses.Welcome to Chinatown (WTC) is a non-profit organization helping to build the next generation of entrepreneurs in Chinatown. Harry Trinh, Head of Creative at WTC, explains that there is a new wave of young entrepreneurs returning to Chinatown. Most of them are children of the neighborhood, who pursued their careers outside the community. “They want to contribute back to the community,” Harry said. He is aware that there will be a loss of these lifelong businesses without a next generation to take over. However, in his view, “you shouldn't have to have the next generation. You should be able to pass it on as a business”. The organization is trying to inform businesses about succession planning, as it's often too late once they realize they need it. 

The solution to supporting these businesses may also be political. Jan Lee, co-founder of Neighbors United Below Canal, explained that legacy businesses that have been there for years should benefit from “legacy leases” with tax breaks. In his opinion, the government does not recognize the intangible assets present within ethnic communities. “We build skyscrapers in New York and give them five years of no taxes. For doing what?” he said with annoyance. These “legacy leases” would help preserve some of these small businesses and Jan disclosed that this solution was proposed to politicians. 

Gary is skeptical of politicians stepping in. “We (business owners) don't have a hope or belief that anybody would come to help us stay open,” he said.