Could this be the end of small business?

Surely the Government will want to help?
Then again, perhaps they only really care about large businesses who can afford the new charges.

Its definitely going to be tough for them. Prices will go up to cover it.

I don't know what to think Ilovecheese, the FSB and various business groups, chambers of commerce etc., have been reporting, but nobody seems to be listening, public or government. Of course, when we are all at home worrying about our energy bills, we won't be out and about using these small businesses. Then of course there are schools, care homes, nurseries etc. Some forecasters are talking about serious impact as parents will not be able to find/afford child care.

But how far can prices go up? Especially when we will all be pulling our belts in. Example: a small cafe in Leicester, electricity bill has just gone up from £10k per year to £55k. Can the owner treble the price of her coffee and cakes to cover this? Would you pay it? I don't want to keep labouring the point, but I truly don't think any of us have any idea of what is ahead, it is terrifying. All those handy little part time jobs which fit in around school hours going too.

It could well be the end of small businesses. My hairdresser has already folded and I am hearing of nurseries closing down. The future is bleak at the moment.

Pubs and shops were closing long before Covid or cost of fuel. Is it a bad thing to buy less 'stuff', reverse consumerism, avoid spending and waste, and avoid encouragement to get fat or drunk? Half the population already live, essentially, beyond their means and millions already have hopeless debt.

With Covid, and with fuel costs, it was/ is /would be, wrong to raid the taxpurse to sustain refusal to adapt to change. quill pen makers had to start selling biros and pencils, or even typewriter ribbons. No furlough, no insisting on doing everything exactly the same, pretending nothing ever changes and nothing ever should.

Some of the better farmers were not troubled by rising cost of artificial fertilisers and weedkillers and imported animal food. They had already changed to better ways, sustainable despite climate change, using ancient methods and latest ones, but not using chemicals. I hope the other farmers,the stubborn "I won't think,and I won't change" farmers don't get furlough-type gifts from the taxpurse to import chemicals to wreck the soil and contaminate the water, while the taxpurse has nothing for social care.

One glassblower interviewed today was complaining about the cost of fuelling her kiln, but disclosed she already had another one, affordable to run, and a good market for those products, plus some sideline enterprises like glassblowing classes. The mega-costly kiln was mainly for her extravagant complex items which gave her personal satisfaction, but were not economically viable. I hope she doesn't get 'furlough type' handouts to keep it fuelled, while old people freeze for lack of a penny from that same tax -purse.

I see where you are coming from deepgreen but I can't see our country embracing the changes. We are a nation who have always gone in for small business enterprises, taken pride in it. ( have had a very small business myself) but what you envisage would face enormous opposition, not least from large companies than had to be dragged kicking and screaming to accept even working from home, and seem to resist any change.

Small businesses give employment to many local people and I think the government should definitely lend a helping hand. Not to give them large profits but for them to continue to employ people who would otherwise be in deep trouble. Maybe this sort of support would reach more and help more families than individual hand outs, I’m not sure.

But I don't agree with your views on the glass blower as I think art is as valuable to our society as commerce and art cannot grow without innovation and experimentation.

I really feel for them. We had our own small business until
Mr. S. retired and wondered during the lock downs how we'd have managed. This is another bitter blow for those that managed to survive.

Ilovecheese

Surely the Government will want to help?
Then again, perhaps they only really care about large businesses who can afford the new charges.

Now whatever gave you that idea?

For the Government to have the slightest desire or intention of helping would entail it having the desire to actually govern.

Have you seen any indication that it wants to do so, or would know how to go about it?

Well, now you mention it grandetanteJE65 no I havn't . Golly it is depressing.

Our SME is on a duel fuel fixed contract until June next year, hopefully things will have settled down by then.

There will/may be a decline in small businesses as the cost of energy bites harder, but there has always been a pretty big drop-out rate for new startups. The creative people who start their own business are very good at finding ways round the problems they encounter.

Perhaps there will be an increase in shared premises, saving on rent, using less energy to heat the space and feeding customers to one another? A cafe with a gift shop attached, several small service businesses operating in what used to be one larger unit, a childcare centre in space now not completely filled by a business whose employees mostly work from home.

Thé trouble is Elegran such good ideas take time to implement, the energy increases are so soon.

Yes, a good idea Elegran, but a lot of small businesses already do this, most coffee shops sell cards and gifts for example, on a commission basis. We have a shared premises craft centre around here, people rent a cabinet or a unit and take it in turns to attend for a day to serve customers, lots of talented people selling jewellry, clothing, art, toys etc., but the building it is in is massive and must cost a fortune to keep at a welcoming and comfortable temperature. Combine that with the fact that most people, myself included, will not be spending money on non-essentials, and the future for these small seed bed start up businesses looks grim.

JaxJacky there have been warnings since Russia invaded Ukraine that there would be energy price hikes and/or energy shortages.

At least five months to plan for such events, a well managed SME should have made some contingency plans.

We have had far longer to plan for this than we did for the Covid lockdowns, when we were literally planning as we went along.

A cafe "feeding customers to one another?"
now that is a radical idea * Elegran* !!

GrannyGravy13

JaxJacky there have been warnings since Russia invaded Ukraine that there would be energy price hikes and/or energy shortages.

At least five months to plan for such events, a well managed SME should have made some contingency plans.

We have had far longer to plan for this than we did for the Covid lockdowns, when we were literally planning as we went along.

How many SMEs will have reserves to fall back on, GG13?
How about businesses with high energy usage, like chippies?
How many can survive price increases for their supplies and a dwindling customer base as people can't afford much beyond necessities?

These are all genuine questions.

Have you made contingency plans? Do you think your business will survive?

I'm so worried for everyone.

Ilovecheese

A cafe "feeding customers to one another?"
now that is a radical idea * Elegran* !!

Sweeny Todds?

Not very understanding post there GG13, no amount of forward planning can cover seriously high price increases in a small business, other than perhaps planned redundancies. Yes, covid was a case of learn it as you go along, and it was tough, but this hitting straight after is going to hurt badly. Not all business will be hit by the energy rises of course, but anyone with premises, such as hospitality, or processing/storage such as butchers, garages will find it difficult to pass on even some of the costs to customers who are already pulling in their belts.

MaizieD

GrannyGravy13

JaxJacky there have been warnings since Russia invaded Ukraine that there would be energy price hikes and/or energy shortages.

At least five months to plan for such events, a well managed SME should have made some contingency plans.

We have had far longer to plan for this than we did for the Covid lockdowns, when we were literally planning as we went along.

How many SMEs will have reserves to fall back on, GG13?
How about businesses with high energy usage, like chippies?
How many can survive price increases for their supplies and a dwindling customer base as people can't afford much beyond necessities?

These are all genuine questions.

Have you made contingency plans? Do you think your business will survive?

I'm so worried for everyone.

I will answer your questions MaizieD

As soon as Russia invaded Ukraine, we looked at what we could do to economise without laying off any staff. We are currently implementing salary increases for all staff along with a one off payment (not a bonus)

Yes we have never run the business in the red and have built up a financial cushion I expect some of our customers may go out of business, that is something out of our control, but accounts are monitored closely and keeping communications open hopefully will minimise any losses.

Yes I am quietly confident our business will survive. It might possibly have to adapt once our fuel contract come to an end, we are already making contingency plans for that.

HousePlantQueen

Not very understanding post there GG13, no amount of forward planning can cover seriously high price increases in a small business, other than perhaps planned redundancies. Yes, covid was a case of learn it as you go along, and it was tough, but this hitting straight after is going to hurt badly. Not all business will be hit by the energy rises of course, but anyone with premises, such as hospitality, or processing/storage such as butchers, garages will find it difficult to pass on even some of the costs to customers who are already pulling in their belts.

Sorry if you feel that my post was not very understanding it was not my intention.

Businesses have always had to adapt and evolve, and we will know more once we have a new PM and Cabinet what they intend to do to mitigate energy costs to all.