How are small businesses faring? The Federation of Small Businesses’ report “Voice of Small Businesses” this week was based on a survey of its members across Wales which addressed this question.
Most of the headlines generated were remarkably predictable. Small businesses had got smaller (many have lain off staff as work slackened off); late payment was a real issue (as customers grapple with their own cashflow issues) and the state of the economy was the biggest barrier to growth (of course). Some businesses identified the lack of help from local authorities – though that’s not our experience in Caerphilly – and others highlighted their lack of access to finance.
But other aspects of the survey were reported with apparent surprise by parts of the media; a quarter of business owners had more than one business. Is that really newsworthy?
To me the real news story, masked by a host of facts and figures, was that small businesses are far more resilient and resourceful than both the overall picture the media paints and the one public sees.
Forty-three percent of FSB members in Wales had targeted growth in the past 12 month, while a similar proportion had sought to maintain the size of their business. Most of those who had aimed to grow had increased sales. And many had introduced new or improved services in the past two years.
I don’t intend to get bogged down with figures here. The fact is that small businesses in Wales are far from being a lost cause. However, the way economic and business news has been reported in the last two or three years, many people may have that impression.
Of course, we’re not out of the trees yet and there will be more bumps on the way. But I recognise the picture painted in a survey of business leaders by the Institute of Directors this week which revealed that companies are relatively confident despite the weak economic outlook.
Small business can survive and flourish. Give them a chance.
Andrew Diplock
Chairman, Caerphilly Business Forum
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