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Maureen Moody talks to local small business people to find out how they have been faring during the pandemic We all remember the shock when the government ruled that non-essential businesses had to close at the start of lockdown. Everyone had to alter their routines, but life proved especially hard for many small business concerns. Cut & Curl hairdressers in Melbourn, owned by Rachel Apperley, for instance was closed for 15 weeks. I asked her about the much-publicised government help for businesses. “It was quite easy to understand,” she told me, “but the late notice and confirmation of guidance for most businesses on re-opening was frustrating. I found I was checking the HMRC website, watching the daily update and checking the South Cambs business site every day for updates or news.” But Rachel found the furlough and self-employed grant system easy to use and received the money within days. “The business grant I received was just as easy as they sent a letter out to invite to apply online, and that money was quickly paid.” She adds; “I cannot complain at the help the government has given us. It was a huge help and I think it was made as easy as it could be.” Times have been much tougher for John Bradley, Managing Director of Melbourn-based company Bitech Limited. Bitech helps employers assess their training needs, and sources specialised training and training grants for them. “I have had no paying work since March,” he told me. “And being a limited company, I only take expenses, not a salary, so I could not get the furlough payment.” Frustratingly he has also had no advice from the government or any industry body or trade association, and for a company trading since 1995 this has been quite a blow. Unfortunately John’s story illustrates the fact that when the economy slows, the first thing that employers cut is staff training. The other thing that happens in an economic slowdown is mass redundancies, and Melbourn resident Phil Stewart was one of those affected. He took voluntary redundancy from EasyJet in July following Covid’s impact on the aviation industry, and joined his life-long friend Ben Morris in his accountancy practice, Rosaris. Their clients range from construction-related industries to clothing, marketing, social media and residential care homes. Luckily, even in difficult times, accountancy practices are still needed. Says Phil, “The timing was perfect. Ben was looking to grow Rosaris and we are both qualified FCA Chartered Accountants with wide experience in industry and practice.”
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But Ben Morris agrees with John at Bitech about the vulnerability of small limited companies. “The government have obviously offered a lot of support to a large part of the population during recent months, although advice on various schemes and policies was given relatively late on. But there are still people who have received no support from the government, particularly very small limited companies, and this has received scant reporting in the media even though there will be hundreds of thousands affected.” He adds that there are also businesses who have been able to undertake work during the lockdown period but whose pipeline will run dry now that government support is being rescinded. “While the economy is recovering there is a danger these businesses may be cut adrift,” he warns Father and son, David and Matt Baxter, who run Royston-based Format Computer Systems, supply IT Services for a range of companies. They were, of course, unable to do any on-site visits during lockdown, but they were able to continue this service remotely. I asked David how their customers have been faring and the knock-on effect on Format’s business. “We have a mix of customers,” he explained. “But the majority are printing companies, and during the pandemic most of these customers continued to trade because of the need for labels to put on goods, such as food and drink etc. For instance, a pharmaceutical company that prints labels for medication, a home shopping delivery firm, and a flower delivery business whose trade tripled during lockdown. Less fortunate was a hospitality sector client which had to stop trading temporarily, but luckily, they had a good August due to the Eat Out to Help Out campaign.” Interestingly, though, it was the surge in working from home that gave Format a huge boost during the first month of lockdown, as they facilitated the supply and setting up of computers plus networking and fast broadband in employees’ homes. Like John at Bitech, and Ben and Phil at Rosaris however, Matt and David have received no advice or help from the government, trade bodies or any other organisation. How has the pandemic affected high street businesses with fixed overheads? Rabeya Miah, owner of Home Corner in Royston, only started her business in mid-2018 so she was in a vulnerable position. “Closure affected me greatly because this is my main income,” she explained. “But the Job Retention scheme allowed me to furlough myself until the 15th June and the business rates grant helped me stay afloat and pay overheads and suppliers.” A quite different experience awaited Caroline Smith, owner of Homemade at The Barn. When lockdown started she had only just taken over the Grade II listed 400-year-old barn in Bassingbourn with its stock of unique hand-made and vintage items. “It came as a
