Cost-of-living crisis calls for togetherness - Michelle Ovens

The cost-of-living crisis continues to put pressure on many families and small businesses, yet the conversation on this seems to have died down, with the mood shifting to quiet acceptance. Only recently a senior figure at the Bank of England argued that being poorer is something people must note-0get used to.

The huge pain of the last few years for small firms – from lockdowns, to supply-chain chaos, to sky-rocketing inflation and now sluggish growth – is not something that can be endured indefinitely. Small businesses will simply go under.

There is a strong argument for ‘accepting being poorer’ being one of the least helpful things to say to exhausted entrepreneurs in a crisis. For many, this is about keeping the lights on, feeding their families, keeping their staff in work; there must be a more positive mindset to move forward.

We need a narrative packed with practical solutions, because that is the way to drive the alchemy of growth. During the pandemic – something which, make no mistake, many small businesses are still very much in recovery from – entrepreneurs had to shift to an emergency footing, pivoting and diversifying their businesses in previously unimaginable ways. This adaptability and resilience is the reason many of our small businesses are still here today, and stronger for it.

Michelle Ovens CBE, founder of Small Business Britain

With the economy in turmoil, it is essential that small firms don’t forget the lessons of the past few years and once again embrace this thinking to survive. Of course, the economic conditions are different now, and today’s situation is compounded by a lack of government support for small businesses, but the lesson of embracing agility and a growth mindset remain powerfully valid.

At a recent event in Edinburgh to help business owners overcome economic hurdles, hosted by Small Business Britain and the Amazon Small Business Accelerator, Scottish business owners talked about how they are getting by.

Managing costs and boosting productivity, particularly by using digital were cited as key tactics, but one of the most important tips was about not trying to navigate a crisis alone, and the value in reaching out and collaborating with other small businesses. The small business community in the UK is a very special and supportive one and reaching out to collaborate can create fresh opportunities, ideas and boost confidence and mental health.

However, small businesses need support from everyone around them – not just friends and family and other businesses, but everyone in their network, from their accountants to their banks, their supply chains to those who can help as mentors, and of course Government.

It is a difficult time to be in business, but the nation’s 5.5 million small businesses represent 99 per cent of UK business and our economy is all the richer for them. We cannot afford to shrug our shoulders at these wealth creators settling for a ‘poorer future’. Our energy needs to be on looking ahead to how we can create hope, growth and opportunity. Anything is possible.

Michelle Ovens CBE, founder of Small Business Britain