WHAT IS/ARE THE MOST SIGNIFICANT RECESSION RELATED ISSUE(S) FACING YOUR BUSINESS CURRENTLY/IN THE NEAR FUTURE?
Selection of RETAILERS in Crowborough Town Centre/Jarvis Brook
Essential to retain FREE Car Parking
Public Toilets closed currently
Footfall down in town centre; significantly reduced in Jarvis Brook
Supermarkets impact continues to reduce footfall in town. Pedestrian signage pending
Inadequate signage on the A26 directing passing trade into the town
Concern that ‘discount’ stores deter shoppers/potential retailers
Essential to draw in more shoppers to town centre. Promote Town; exploit Caravan/Camping site – Easter/October season
Relocate Farmers Market into the centre
Random allocation of retail outlets sites rather than a planned primary /secondary shopping areas being identified.
Need to attract smaller ‘niche market’ shops that offer variety
Incentives needed for start-up retailers/shorter variable leases
Rates holiday/reductions
Need to work with Landlords re sensible rents
Initiatives / copy best practices elsewhere to make effective/attractive use of empty shops
Market towns have been bypassed by the £3million government fund to help revive empty shops and some local authorities have been more flexible (unsure in what ways) in getting landlords to agree to make their empty premises available for a variety of community uses
More small purchases than before; fewer larger purchases being made
More repairs than purchases of new;
Increased shoplifting/ticket switching
Rubbish/weeds around shop fronts present shabby image
House sales/relocations reduction has had widespread adverse implications.
Internet purchasing a threat (many enquiries being received but minimal sales; internet becoming more necessary but it requires skills training IT; sales; stock control, negotiation. Requires additional or extended premises/stock/finance.
Pedestrians ‘tripping’ over brass studs to identify shop frontage boundaries
Decline of Construction Industry had adverse effect on business and resulted in redundancies
Issues remain over on-street parking which should be restricted to enable passing trade to park to convenience shop
WDC car park spaces for shorter term being misused / also retailers unsure that shoppers/passers by know that WDC car park exists
Discounted rate relief is essential
People not entering shops and if do, take weeks/months to decide (uncertainty prevails) to buy
Retail T/O 80% less now than before recession; a separate side of same but a service business T/O increased to offset retail loss
The recession won't hit us until this autumn/winter campaign as we order at least 6 months ahead. I have noticed a dramatic price increase in ......... for this coming season so I am sure it won't help us
Membership of Gym Clubs generally have held up; some reported that one local Gym increased it’s membership by 20/25% and extended premises to cope with increased use
Recycling facility at Farningham Road denied to Charity Shops that receive a great deal of very unsuitable items for resale which have to be disposed
Some retailers are a little more optimistic. Many are reserving judgement until after this winter. A few are ‘okish’ about their business levels to date/during recession
NON RETAIL SECTOR selection (Crowborough and hinterland)
“We are from HO and we are here to help you!” – varying degrees of cynicism prevails
Business rates not value for money
Discounted Business Rates scheme feared to be under threat/withdrawal
Separate rate for dustbin collection extortionate. Sending out a ‘reminder’ within a few weeks of sending ‘bin’ rates bill is a waste of tax payers money as most say they would pay their ‘bin rates’ no earlier than 30 days in any event
Begrudge paying rates that increase pensions/salaries of public sector CEO’s / staff
Stealth taxes (Nat Ins)
Disenchantment with politicians wanting to ‘help’ and recognition/realisation that at the end of the day it is down to individual business people to sort themselves out and get on with surviving
Trying to use initiative to attract more business but are stopped – e.g. grass more than knee high on verge. Cut the grass. Put professionally produced A board on grass to promote their business. Highways said ‘ no’; TESCO’ put A board on pavement with no problems!
Business associated with motor accessories/tyres maintained business levels and will be acquiring adjacent premises for expansion. Concerned that ‘change of use’ may be an issue for Planning on the basis that Planning/Council are not seen as helpful or supportive of businesses
Current government have done more harm than good for small businesses but are not convinced that any change of party will bring politicians with any better business acumen or experience
Small businesses have had to scrutinise and review every aspect of their operations, reduce their costs and stock, often work harder and longer – and chase business much more for less return in order to survive
One person was very complimentary of Business Link over the information they provide; others are not
Increased use of the internet/websites is inevitable. Need time and expertise (and funding) to exploit that side of the business
Some of the larger national companies that supply smaller businesses have arbitrarily increased their product prices ( 30%/50%) with immediate effect to try to maintain their income/profits. This results in the smaller businesses having to pass on increased costs to potential clients/customers. (Pilkingtons is a good example of that practice)
Local teacher of singing/piano has found in recent months that more people are taking up her services than before; perhaps some are looking to improve/pursue their own leisure/personal interests
Some large companies have relocated away from the UK resulting in less employment, under utilisation of skills, deterioration in communication/delivery
Uncertainty amongst businesses and the general public more often than not results in fewer purchases and longer lead times in decision making in whether or not to proceed with spending
Whereas builders in the past would refer work to be done to more specialist tradesmen, they are taking on that work themselves (e.g. glazing) which in turn has adverse impact on ‘specialists’
Larger companies are taking longer to pay smaller businesses.
“Seem to be busier now (especially the last three months) than I have been in the last 3 years. My market is definitely growing for now! Cash flow is fairly good. Don't have a bank overdraft. Don't need any other finance. Only small problem is a small percentage of customers who hold up payment - generally the better off ones!!
Reduction in public’s disposable/discretionary income; people paying off debt and/or saving rather than spending
“One problem we have had to deal with is the way several suppliers have hardened up and shortened their payment terms, maybe because of problems they have or the general feeling of nervousness that permeates every area of business who knows. This has caused us to increase our usage of our overdraft facility however the bank have been very supportive and whilst we increased our facility slightly in fact we have made little or no use of that increase. It did though give the bank the opportunity to increase their charges - perhaps we should have kept quiet !! Regarding government help, we have used the option to pay our VAT in stages making monthly payments to clear in the quarter rather than one large payment and that has been really helpful but apart from that we have just kept our heads down, innovated where possible and kept our levels of service at the highest possible.
“Only last week I had cause to call for help regarding how much we should pay for engineers to stay at home (no pub/cinema etc) and await a call out. I used the government web site punching in "minimum wage" I typed my question. Nothing!! Not even an automatic reply.
This Monday I tried business links. Next day a delightful girl said she would pass on my request to greater bodies. Nothing!! Woe!! It is small companies like us trying to get the country to its rightful place again, but we receive no help at all.
“The issues which hamper our expansion and faster growth split into two groups:
common to most businesses. Cash liquidity and its cost, real and hidden.
An example I have asked for an overdraft our business bank, we have been banking with for 17 years with good record. The bank itself has not suffered any losses in the recent financial mayhem. Yet when they finally offered me combination of an overdraft and loan it was at twice the cost of an overdraft arrangement I have with our second bank from two years ago.
Cost of cash is HIGH and hard to come by.
Commuting across Kent & Sussex is immensely time consuming due to a very outdated road system- costing time and hence money – effectively lost.
a)Specific to Hi-Tech- there is no viable program to train new and capable people to work in machine shops and businesses, now staffed by an aging population- It is a time bomb ready to kill UK Hi-Tech industries.
b) The Innovation Hubs have a fundamental flaw in their business description. The Hubs do not innovate, we, the SME's, do. What we need Hubs to be able to organise and add professional expertise to in negotiations with other professional bodies, Hi-Tech SME need to work with in ordered to secure both IP and new contract.
It is precisely here, where they do not want to get involved.
“I have only been here for just under a year but I think all companies are facing different challenges with the development of the internet, our issue (or rather mine) relates to getting our marketing right, there is so much choice it’s working out the best methods with the right offering. There is support through business link so I think the help is there, but as I see it, these are our issues.
“I believe the biggest problem facing small businesses, including ourselves, is the complete lack of support from the "tax payer financed" high street banks . There seems to be no understanding of the nature of everyday business, only a concentration on snapshot type monthly results and a reluctance to help in even a small financial way .
I believe most banks have more than reasonable security to cover their financial input but they are currently not prepared to speculate at all. They have happily received thousands of pounds from all of us over many years in exorbitant charges but are not currently returning any help back! Worryingly I believe that we will continue to see the demise of many small businesses whilst we work through this current recession”
Some small businesses not registered for VAT think that having to pay VAT on e.g. their advertising /print would help them through this difficult period
Local Authority Planners need to have a much wider appreciation of businesses, the issues they face and the importance they have in supporting and helping to expand the local economy
Negative sentiments in the media are making people more cautious than should be. Businesses reluctant to use new services’/potential entrepreneurs reluctant to take up franchises during uncertain times caused by the recession. Media to report positive aspects/events rather than ‘disasters’
Local, independent and impartial business support is not only essential during recession but at any other time. How will Wealden and East Sussex Councils ensure that the action taken by them in trying to support local economies in recent months will continue after the recession?
Some think that things are very gradually improving but are taking nothing for granted
FINAL note/aide-memoir for reference from Tony Slack (Local Business Network)
From the 2001 Census data, in the Crowborough and its hinterland – 4459 self employed people; 2878 work at or from home).
According to recent ESCC report – Wealden has the highest number of homebased businesses in the county.
That should be recognised as a fact and an opportunity. Research is required to establish what the situation is throughout Wealden within each of the market towns. Strategies should be introduced to identify those businesses and to help them achieve their individual and collective potential and be recognised for the wealth they create and contribute to the local economy. Land for development for businesses is scarce; the road infrastructure is poor; larger companies cannot be attracted to Wealden so we need to take advantage of and be seen to be supporting the micro business network that exists.
I read a survey of small businesses recently (Under the Radar) – 'homebased' in particular. One of the conclusions is that business support is sadly lacking for such businesses (quite scathing report). The existing business support is inadequate. Not going into the quotes about Business Link and Local Authorities – but there are yet other structural changes involving Business Link and SEEDA which will not doubt result in further dilution of business support
One local authority must take accountability or is seen to take responsibility for supporting, representing, sourcing the local small business economy in Wealden. Local Democracy, Economic Development and Construction Bill (HL) 2008-09 being progressed this year lays the foundations for that. In my view, WDC is the only LA that should do this but it would require additional resource which has been depleted in recent years as a result of political decisions.
Concentration upon tapping into the potential that exists amongst self employed / homebased micro businesses in the rural areas of Wealden could be one constructive way in developing and sustaining local economies. Alongside that happening, perhaps there would be merit in the market towns being identified and resourced as business centres for their immediate hinterland.
Inclusion of towns such as Crowborough, Uckfield and Bexhill to those towns and villages in East Sussex that already have access to economic development related funding from bodies such as the Warr Partnership
A key factor in all of this is that on-going business support is required from Local Authorities during the ‘better times’ ahead – not just during a recession. I would suggest that rather than give £100K to Business Link each year (much of which no doubt goes on ‘admin’), perhaps some of that funding should be allocated to WDC or even direct to the Chambers of Commerce/Business Associations or Networks with a brief to develop and support the increasing micro businesses network that will continue to exist in their rural areas.
7.09.09.
