Small businesses owners need urgent support to tackle cost of living crisis - Philip Bolson

Small businesses are unique. They make up a significant part of the economy and are often undervalued or misrepresented. They include businesses such as retail, beauty, hospitality, training, services, artisan products, and many more. I have heard them classed as “not really a business”, “lifestyle”, or “low yield”. They may work alone, employ a few staff, or just run their business a few days a week. People who are skilled, experienced, and dedicated to what they do.

This is the world I live in and am proud to be part of. Creative, driven, balanced, tired, worried, excitable, tireless – and that’s just before breakfast.

The thing with small businesses is that every £1 of income really counts. It is real money and has an immediate impact – puts food on your table, put a little aside if you can, you pay your bills, you complete your tax return. Recently, I “won” a small piece of business – nothing that will trouble the taxman, but it does bring a spring to your step, make you feel worthwhile, affirms what you do.

There are thousands of this type of business. People who have made the brave decision to “go alone” for a multitude of reasons. From escaping corporate life to simply wanting more balance.

In early 2021 I was highlighted in The Yorkshire Post as an example of new small business start-up that emerged out of the Covid crisis. Little did I know that two years later we would be in the middle of an even bigger crisis that is frankly out of control. A cost-of-living crisis that is increasing costs and killing demand. One embroidery and online business owner I know has seen their business fall away over the past three months from circa £1k per month to £150 per month.

This crisis is putting small businesses at risk and “the Government” doesn’t seem to care.

Stephen Waud, CEO of the Business Enterprise Fund, said: “We are finding that at present businesses are being presented with unparalleled challenges for survival. Whilst most businesses are holding up amidst the various challenges, we are beginning to see signs emerging of significant stress in the economy.”

A lot has been written about what needs to be done: small business cannot wait for an Autumn budget. Bring it forward and do it now. Both PM candidates have had weeks to build a plan and whoever wins must now simply “press the button”. For example, reduce VAT, reduce energy bills and cap future rises, freeze business rate payments – particularly for start ups, introduce tax breaks for new businesses at the point of set up and fund business support that will encourage “sustainable change” and resilience.

Of course, I am not an economist and have said before that these may not be hugely “strategic” or progressive but frankly we don’t have a choice. Small business needs action now to stay in business.

Philip Bolson is the founder of business consultancy Mr B Hospitality.