Peter Vosper: Has the UK made it too hard for small businesses to survive?

Is there a future for small businesses in the UK?

More importantly, is there a future for them outside the larger cities? We in Devon and Cornwall, along with other rural areas,  have relied in the past on local businesses to provide services that the large nationals are either not interested or, more likely, it doesn’t meet their profit requirements.

Neither the last government nor the current one, have done anything to encourage people to set up their own businesses.

Income tax, VAT, rates, employment laws, regulations, and, of course, the internet. Is it surprising that items which can be sold online have grown to the detriment of so many retailers? Not only have sales been delivered by the larger retailers, this has enabled the growth of one of the largest retailers and delivery companies in the world, Amazon.

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Amazon are just one of many large multinational companies which not only have the advantage of scale but also, the advantage of muti national costs, regulation and taxation. There are many of these offering lower priced goods and services to consumers in the UK which is vital to keep the cost-of-living down. 

However, there are many services which consumers like which are, or have been, provided by local companies and run by residents. Some have been passed down over generations and been adapted to suit local requirements as they change over the years. They, too, have become contributors to our needs.

There has also been the growth of local companies who have, taken on additional areas within the region and some have had even greater success and become well-known international brands like The Range, and Princess Yachts, as well as celebrities whose names are recognised worldwide, such as Rick Stein and Sir Tim Smit (Eden Project).

Now we look at our town and City centres, and they are full of cafes, fast food outlets, phone shops, and charity shops. Will the individual shops we visited and have now closed, ever come back? Are we in danger of losing more of our local service industries, as they too, find it harder to make money, comply with regulations and afford additional employees. Is this natural progression and what many of us all want or are prepared to accept?

The reason that I ask this is to many of the big companies adopt the “big is beautiful” philosophy and if they can sell it to you online why do we need to have shops everywhere. My own industry is a classic example. The typical volume manufacturer used to have representation which meant you could get your car or van serviced or, more importantly, put right if it broke down, within a 30-minute drive.

Now, many of the smaller outlets are being given notice and it is going to be longer before your emergency can be fixed and a longer drive when you want to purchase another one. They want to make savings by dealing with less people, delivering cars and parts to less people, but expecting those remaining to build bigger more expensive showrooms, run and sell more electric vehicles, and keep car and van owners on the road when things go wrong.

They argue, less will sell more, there will be less competition, so bigger will be better. But will you, our customers, be happy with this? My point is the only way you can have a healthy, local economy is to have a mixture with opportunity for all sectors.

We are seeing new brands coming and succeeding in the UK motor world, particularly from China. Good products, the latest technology and leaders in the electric vehicle market and they are looking for dealers who can increase their share of the market.

European understand the urgency but must re-organise quickly or they will find loyal dealers moving to the Chinese newcomers. Initially the Chinese have gained a mixture of dealers, but they will want to have more coverage. It should mean more opportunity and more coverage with new entrants but is there the appetite and is there finance available?

Or will multinational groups move to take the market?

Interesting times.