Christmas will be make or break for many small businesses – they need our support

Small businesses are vital to Britain’s economy, this season they will suffer rising costs and product shortages, we need to pull together and get them through winter, writes Michelle Ovens

‘It’s important that we remember the vital contribution small businesses make and not let it disappear from the view of the public, media or policymakers’ (Getty Images)

The confirmed inflation rate rise this week is a concern for everyone, not least the nation’s 6 million small businesses. It adds to a set of new, complex challenges that entrepreneurs are dealing with, rather heroically, behind the scenes.

The price of goods, rising energy costs and product shortages are now the three biggest issues facing small business owners in the next six months, according to new data from Small Business Saturday and American Express this week. This is happening while government support is ending. There is a need to respond to the economy’s structural changes, as the long-term impact of the seismic shocks over recent years reveals itself.

With all this at the forefront, it is incredibly encouraging that the research also showed that entrepreneurs are feeling significantly more confident than they were six months ago.

Seven in 10 small business owners now feel good about the current state of their business, compared to just over half (52 per cent) six months ago in May, when businesses were still recovering from the aftermath of prolonged lockdowns. This is good news indeed. Perhaps what is driving this optimism is that small businesses have become much more resilient as a result of the pandemic.

But while the peak of the crisis may have passed, their confidence doesn’t mean concern or support is no longer needed. We all need to pull together to support the core of our economy through the winter.

Small businesses are critical to powering economic recovery – they account for 99 per cent of UK businesses, 60 per cent of private-sector employment and have a collective turnover of around £1.6 trillion, according to the Federation of Small Businesses. It’s important that we remember their vital contribution and not let it disappear from the view of the public, media or policymakers.

We all know how small independents came out fighting in this pandemic. Many went above and beyond to support their communities in lockdown, look after their staff and customers, and help those vulnerable and shielding.

The nation’s love of small businesses soared as a result. Not only did the crisis bring home how much we rely on and value our local independents, but it also sparked a newfound admiration for the incredible entrepreneurialism we saw across the country.

The same research released this week shows us that small business owners still feel that goodwill. More than three quarters (78 per cent) of small business owners feel more supported by customers in their local community, and more than two thirds (67 per cent) have seen a rise in support from fellow independent business owners. But, anecdotally, I hear some worry this support is starting to fade.

Awareness of the need to back small businesses and shop locally remains a rising trend. Last year, shoppers spent an estimated £1.1bn in small businesses across the UK on Small Business Saturday UK.

This year, the campaign takes place on 4 December and the hope is, with the country in a far more positive place as we approach Christmas, people will use the day as a chance to celebrate, thank and support those small, local businesses that have done so much for us throughout the pandemic.

After almost two years of constantly reacting, adapting, and pivoting to the hurdles of the pandemic, small firms are slowly getting back on their feet, despite some lasting challenges and a complex landscape.

While it is inspiring to see them feeling so much more positive, they undeniably still need support heading into a crucial festive period. It’s vital we redouble our efforts and get behind the small firms we undoubtedly love.

Michelle Ovens CBE, is the founder of Small Business Britain, and director of Small Business Saturday