Nov. 16--A flooring company says customers are choosing vinyl over wood. A shoe importer says few can afford his Italian leather loafers, while a florist says people are buying smaller arrangements for funerals.

The economic downturn is affecting small businesses in many ways. But not everyone says he has felt the brunt of hard times. For example, an accountant in Paterson says people need his services more than ever, while a jewelry store owner in Totowa said love is still leading to sales and a liquor store clerk in Passaic said business is good because when times get tough, some people turn to the bottle.

"They don't eat, but they come to drink," said Gitu Patel, 40, who manages President Liquor. "A liquor store is like a pharmacy. This is medicine."

New Jersey defines a small business as having fewer than 100 employees. Passaic County is home to 18,231 small businesses, said Deborah Hoffman, director of Passaic County's economic development department.

If their businesses go under -- and the federal Small Business Administration found that half of small businesses fail within the first five years -- the local economy will be affected through what Hoffman calls the "multiplier effect."

"They pay salaries to employees and then those employees buy goods at the local supermarket and the local Modell's, and it all washes through the economy," she said.

Since the beginning of 2008, the Dow Jones Industrial Average has lost more than 4,600 points, housing prices have crashed and banks have tightened lending standards.

Unemployment reached 6.5 percent last month. Retails sales have dropped 4.1 percent from last year.

Whether raking it in or struggling for survival, nearly all the business owners interviewed said they needed to adjust their business plans to meet changing demands in the marketplace.

Barry Rosenfeld, 62, owner of Dundee Floor Covering, which was founded in 1927 and is among the oldest establishments in Clifton, said a poor economy has turned his focus to selling more generic items.

Rosenfeld said customers are no longer ordering European carpets at $7 a square foot. Instead, they are choosing cheaper, American-made carpets for $2.99 a square foot. He said customers are also choosing less expensive vinyl flooring that looks like wood instead of real wood.

"We are going back to our roots of selling remnants and end pieces and closeouts," he said.

Rosenfeld now employs 10 people, having recently laid off four full-time employees.