A third of Highland businesses 'may not reopen' after coronavirus crisis, survey suggests; Federation of Small Businesses survey says sustained government support may be needed
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MORE than a third of Highlands and Islands businesses that have shut down operations during the coronavirus outbreak fear that they may never re-open, according to a major survey from the Federation of Small Businesses (FSB).
On the back of the research, the small business campaign group is calling for sustained government support for firms grappling with the impact of the crisis.
FSB Scotland called for clear official guidance about the steps businesses north of the border should take before they consider re-opening.
The FSB’s survey found that almost two-thirds (64 per cent) of Highlands and Islands firms have been forced to close since the beginning of the coronavirus outbreak, compared to about half of Scottish firms (53 per cent) and four in ten (41 per cent) across the UK as a whole.
Of those that have closed in this region, over a third are not sure whether they will ever reopen, a figure mirrored by Scotland as a whole.
The survey found that almost a fifth (18 per cent) of Highlands and islands businesses have failed to make, or faced severe difficulties in making, commercial rent or mortgage repayments as a result of the pandemic’s economic impacts.
The FSB’s Highlands and Islands development manager, David Richardson, said: “The majority of Highlands & Islands businesses are now relying on whatever government support they can get to survive, having followed official advice and closed their doors.
“Given our highly seasonal visitor-based economy, many are seeing the opportunity to make money this year slip through their fingers as lockdown continues towards the normally busy summer season, and over a third of all smaller businesses are on a knife-edge, worrying that they might never reopen at all. Unlocking can’t come soon enough for them, but all recognise that this can only happen when the Scottish Government deems it appropriate to do so, based on the best expert scientific and medical advice.
“In the meantime, businesses are doing everything possible to adapt to this rapidly changing world. But when the time comes to begin re-opening, they won’t be able to go from nought to sixty overnight – for many it will take time to staff up and reactivate supply chains, and it will take time for customer numbers to rebuild.
“However, revival must not be down to businesses alone. If we want to protect our local economies and communities from closures and rising unemployment, we must all – governments, big businesses, and the general public – strain every sinew to support our local businesses and give them the best possible chance of survival. In particular, businesses will need sustained government help to reduce the chances of them stalling on re-start; they will need clear official guidance from the Scottish Government over the steps they should take to ensure that they open safely; and they will need the Scottish Government to do everything possible to reassure a frightened general public that it is now safe for them to reopen.”
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