Business Comment
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By David Richardson, Highlands and Islands develoment manager, Federation of Small Businesses.
TWENTY years ago no-one had heard of the internet; today it plays a pivotal role in the lives of many people around the world. We use it to communicate with one another, sharing thoughts, ideas and views, factual information, photographs . . . and also for trading.
Consumers are increasingly using the internet to decide where they want to go on holiday, where they will stay and what they will do when they get there — and to book it all on-line in advance. When shopping for goods and services they are using the internet to identify the best products for their needs and to find the best prices, helped immensely by customer reviews.
So what does this mean for the Highlands? Online retail sales increased by 14 per cent in the UK last year to more than £50 billion, hitting high streets hard. Some small, local businesses have undoubtedly lost out, a problem compounded by the spread of supermarkets and discount chains. The fact is that the internet and highly competitive on-line selling is not going to go away. However, this certainly does not mean that Highland businesses cannot fight back, and this brings us to the positives.
Around 28 per cent of people in the Highlands and Islands receive broadband speed of less than 2MB and some do not get it at all. This is all about to change as BT begins rolling out faster broadband across the region in a project overseen by HIE. The aim is to ensure that 90 per cent of the people in the region have access to 30MB broadband by 2015 and that everyone has access to a minimum of 2MB.
Universal broadband availability will mean that all businesses, should they wish to take up the opportunity, will have the ability to engage with their existing customers and also to attract new customers from markets that they could never have accessed in the past, using websites, social media like Twitter and Facebook, and apps. Moreover, small businesses can work cooperatively with other businesses in their areas, taking advantage of the strong image that the Highlands has around the world. Small businesses pooling resources to market and sell themselves on the world stage under a Scottish, Highland or local banner can work wonders.
Most tourism businesses already do it, as does the Mey Selection and Taste of Arran. It’s worth a thought. There is also an opportunity to install broadband and wi-fi connections in tourism businesses and elsewhere to ensure that visitors have easy access to information on the area and enjoy the best possible experiences as a result.
But that is not all, for businesses must also consider that, like it or not, their customers may well review them on the internet for all to see. Every customer that reports a bad experience can cause immense damage and, as all businesses know, the answer is to avoid this by focusing on the features that tend to differentiate small, local businesses from the supermarkets, discount stores and on-line traders like Amazon: local feel, a deep understanding of, and pride in, the goods or services on offer, outstanding customer care and, very importantly, the personal touch.
Fast broadband availability will undoubtedly bring many more opportunities to the region than it does threats, but the investment will only be worth it if businesses of all sizes use it to grow and develop. The FSB is working with HIE to establish how this can best be achieved, but more of this anon.
