The state of the business environment in Potomac has changed little in recent years as the cost of doing business in the area makes it difficult for small businesses to survive, say those familiar with the area’s business climate.

“Not much has changed in Potomac in the last two to three years,” said Jennifer Matheson, director of operations for the Potomac Chamber of Commerce. “The most significant thing is the takeover of The Tavern, but other than that there’s been very little. You would think in a small, bedroom community like Potomac could attract businesses, but the astronomical rent makes it difficult for people to open and maintain businesses.”

The trend of members of the baby boom generation downsizing and leaving their homes in Potomac is another factor that affects local businesses.

“The people who are moving out of Potomac now might be better customers than the people who are moving in. The businesses in Potomac might find themselves with more of a struggle to make their numbers” said Potomac attorney David D. Freishtat of Shulman, Rogers, Gandal, Pordy & Ecker. He currently serves on the Montgomery County Revenue Authority. “If someone moved out of an apartment in Bethesda, then that’s where they’ll drive to do business. It only takes five to seven minutes longer to get to Bethesda, where they’ll have more choices.”

There has been a gradual shift “to a more urban thinking and acting population,” said Freishtat. “In the last five years, younger wealthy people who’ve had success and [are] looking to move out of apartments are wanting live in more urban areas like Bethesda.”

Banks and restaurants have the greatest chance of survival. The exceptions are businesses that cater to the community’s rural environment. “The businesses in Potomac that will always be successful are the saddle shops,” Freishtat. “There are two of them [here] and there’s nowhere else to go except Frederick. But the market can only support one or two.”