MSP reports back on High Street ‘credit crunch’ survey (North Tayside Liberal Democrats)

North Tayside Liberal Democrats <info@libdems.org.uk>

MSP reports back on High Street ‘credit crunch’ survey

July 14, 2009 3:43 PM
Originally published by Scottish Liberal Democrats

Jim Hume, Liberal Democrat MSP for the South of Scotland, has today commented on the interim findings of his business survey which is currently being carried out across Dumfries and Galloway.

The MSP has already issued the survey to Lockerbie, Annan, Langholm and Moffat and will cover Dumfries in the coming days.Jim Hume MSP: South of Scotland

Jim Hume said:

"Most respondents to the survey were small retailers, 45% of which were sole traders and 45% had only 2 to 10 employees. Despite the small nature of these retailers, just under half reported annual turnover as being over £50k, and just over a third reported it being between £21-30k.

"A huge majority of respondents reported that their energy bills had risen in the past 12 months, reflecting changes made by energy suppliers. Increased costs associated with petrol and diesel prices had either significantly or very significantly affected their business. This is a particularly valid and probably not unexpected point given the need for people in rural and rural remote areas like Dumfries and Galloway to use the car as the only way to get about for business or other uses.

"Nearly three quarters of respondents reported that they received most business through word of mouth, with advertising seeming to play little part in attracting business. This reflects the local community nature of many of Dumfries and Galloway's communities, with people willing to support the 'buy local, shop local' message.

"Just under half of respondents aspired to grow their business to a medium or large size, however, only a quarter had a business plan to assist with growing their enterprise. This suggests more support is needed for aspiring businesses.

The MSP concluded:

"Although responses are still coming in, the initial findings of my survey show that high street shop owners have seen a marked difference in trade recently with just over three quarters of the respondents saying that the credit crunch has impacted upon their business. The results indicate that local businesses are feeling the impact of the current economic climate and do not feel confident of a recovery in the next year.

"What's staggeringly obvious in the results so far is that communities rely on their local shops and businesses for a great many things, but they also see their local shop owner as being at the heart of the community helping to keep town centres vibrant.

"I shall be reporting the final findings to Scottish Enterprise and Dumfries and Galloway Council's Economic Development Department in due course."