We have been struck by the sheer determination of so many small businesses across Cumbria over the last 12 months to keep afloat, and now the majority are open again and looking to make up for lost time writes Phil Collier (pictured), Federation of Small Businesses Area Leader for Cumbria.
As has been well documented, small businesses have had a really tough time, often unable to open, subject to restrictions or suffering from the lower consumer confidence or lack of footfall which is a result of lockdowns.
Programmes like Digital Tech Cumbria have been brilliant in helping firms to get more of an online presence, but there’s no substitute for being able to open one’s doors and have customers back in the premises.
There is definitely optimism out there, but also realism in understanding that it will be a long road back to profitability for many businesses. Grants have helped those eligible to keep the wolf from the door, while the covid loans have seen significant take-up.
These loans will be due for repayment though and businesses are often torn between wanting to get these paid back as soon as possible and the alternative of paying them over a longer period.
Paying back over the shorter term means tough decisions in the here and now but gets a small firm back on an even keel more quickly, but for many they wont be making enough money in the immediate future for this to be a realistic option. Some businesses will take the full ten years allowed to pay back their loans.
What is clear is that small businesses will be careful with their cash for the foreseeable future. Businesses which had ten staff before covid will now be hoping they can manage with eight. Expansion plans that some had will have to be put on hold, and options like trying to increase environmental friendliness for some might have to wait. Government targets on Net Zero are admirable, but many businesses lack the funds to invest in new equipment or activities which will help them to become more eco-friendly.
Government will need to incentivise behaviours if they want our smaller businesses to step up to the plate. The Apprenticeship funding announcements and the funding through Kickstart are examples of where if we get the system right then small businesses will offer opportunities to young people. Many small businesses are planning to offer jobs and placements to the next generation and help them get a step on the employment ladder, which is great news for all concerned.
We want to see a similar level of support for Net Zero activity. We have a beautiful county and we want to keep it that way, as well as making sure that the UK leads the way on what can be done through its businesses to combat the threats of climate change.
We just need to understand that businesses sometimes need a helping hand to make this a viable option.
