Cornwall small businesses' confidence for survival reaches all time low
Hospitality businesses fear lack of certainty with rising costs and harder trading conditions
A report has found small businesses confidence levels in survival is at a new record low.
According to the Federation of Small Businesses recent quarterly review - trading conditions, revenue falling by 30% and staffing issues all caused lower confidence at the end of last year.
The findings showed a record level of pessimism among local small businesses across Cornwall and the south west outside of the lockdown periods.
As part of our investigation into the state of Cornwall’s hospitality industry, figures revealed more pubs and bars are being forced to shut their doors due to costs - adding to business' fears for their future.
"We're just facing an uncertain future"
Jade Ulrich, owner of the Palm Bay cafe in Newquay, told us the cost of living has caused uncertainty for them meaning they've had to cut down trading to three days a week. She said: "We're just facing an uncertain future, the only thing you can do is move with every day".
"You do just have to adapt as you go along, we're doing special events, we've got community based things but unfortunately because of the crisis everybody is tightening their belts. Because it's so uncertain we just don't know right now.
"We recognise it's not just business owners who are struggling here. Everybody is. You don't have to spend that money if you physically don't have it, you can support in other ways as well".
The stats from the FSB between October and December last year showed that fears of inflation, falling consumer demand and the general cost of doing business left confidence levels considerably lower than the previous quarter.
It also revealed our region to be the lowest in confidence in the UK.
"It all got gradually worse"
FSB regional policy representative, Craig Carey-Clinch, said: “It all began with a renewed sense of hope as we looked to have Covid behind us but then it all got gradually worse as domestic and international events combined to wreck hopes, ambitions and small business’ finances".
In addition to the overall confidence figures, the report also revealed a continued decline in revenue among the small businesses surveyed, an increase in the amount of businesses shedding staff and growing pessimism about trading conditions in the immediate future.
Craig added: “We can only hope that we have now reached the bottom of this cycle and 2023 can start to slowly but surely change the narrative.
“Small businesses and the self-employed here in the South West will do everything they can to try to change things but, as ever, we can’t do it alone.
“We need sympathetic, innovative and supportive people at the heart of Government to put business first and help us keep our great local businesses and entrepreneurs on track to begin the economic fight back we all crave".
The Federation of Small Businesses release quarterly reviews and say another report will be released at the end of the next quarter - around end of March. The recent report can be found here.
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