October 23, 2025

Impact of Fires on Microbusinesses in Altadena and Pacific Palisades

News Summary

A UCLA study reveals that microbusinesses in Altadena and Pacific Palisades have suffered immensely due to the recent Eaton and Palisades fires. These businesses, constituting a significant portion of the local economy, faced closures and operational challenges, emphasizing the urgent need for support and policy recommendations to aid in recovery and sustainability for these vital community establishments.

Altadena – A recent study conducted by UCLA’s Latino Policy Institute, in collaboration with UCLA’s Center for Neighborhood Knowledge, has shed light on the significant impact of the Eaton and Palisades fires on microbusinesses in Altadena and Pacific Palisades. The research highlights that microbusinesses, which are defined as businesses with one to nine employees, represent between one-third to one-half of the businesses destroyed in both fire-affected areas.

Microbusinesses, often considered the backbone of local economies, particularly in Altadena, were considerably affected not just in commercial settings but also in home-based environments, where owners lost both their homes and their livelihoods. The study is divided into three key sections: the baseline business landscape prior to the fire, the quantification of structural damage, and an examination of short-term outcomes such as closures of businesses and property sales.

According to the research, the majority of businesses in the fire zones were located within the perimeters of the fires, with nine out of ten businesses in Pacific Palisades and seven out of ten in Altadena falling victim to the disasters. In Altadena, many businesses operate from residential properties, while Pacific Palisades has a higher incidence of commercial parcel businesses.

The data indicates that the vast majority of businesses that were delisted in the aftermath of the fires were microbusinesses. Additionally, some businesses that remain listed have yet to resume operations. As the recovery progresses, further research plans to engage small business owners to discuss their needs and policy recommendations for future resilience.

Recovery for many of these microbusinesses is a prolonged process, exacerbated by the diminishing availability of resources over time. For instance, one business owner reported a 50% loss in customer base following the fires, although there has been a gradual recovery towards pre-fire levels. However, increasing overhead costs continue to complicate these recovery efforts for small businesses.

Community initiatives are underway to encourage local shopping and dining, with fundraising efforts aimed at promoting businesses in Altadena. Local residents have voiced their concerns regarding the potential loss of community ties and the long-term implications for their neighborhoods as they look towards rebuilding efforts. Fears about maintaining neighborhood stability and the potential for demographic shifts as recovery continues have also been expressed by many community members.

The fires resulted in extensive damage, destroying over 10,000 buildings in the affected areas, including homes, schools, and churches. Notable landmarks, such as Fox’s Restaurant and the Altadena Golf Course, have also faced significant destruction. The local population remains vigilant, with many residents advocating for proactive policy measures at the state level to address future disaster preparedness effectively.

The UCLA study reflects the importance of understanding the challenges faced by microbusinesses in the wake of such disasters, providing a vital framework for addressing their recovery needs and ensuring the sustainability of these small business foundations within their communities.

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