Study reveals the mental toll of Covid crisis on Highland business owners
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More needs to be done to support Highland business owners after a study revealed the impact the coronavirus crisis is having on the viability of businesses and the mental health and wellbeing of their owners.
The call comes from the Federation of Small Businesses (FSB) and follows an online survey of 1200 business owners and the self-employed conducted by FSB Scotland earlier this month.
Over half of businesses in Highland are currently closed, 45 per cent by law, and nine per cent voluntarily.
Just over a third, 35 per cent, say they are struggling to stay afloat, and another third have seen their sales and profits fall. Moreover, almost a half are concerned about their ability to survive for the next few months.
Two in 10 Highland businesses fear that they will not reopen.
Other concerns flagged up by the survey include the impact of the crisis on their personal incomes (40 per cent), staff retention (13 per cent), debt repayments (29 per cent), their mental health (37 per cent), ability to keep up with changing government rules and regulations (40 per cemt) and issues at home such as childcare and care commitments (11 per cent).
Almost four in 10 Highland respondents (37 per cent) have applied for grants from Highland Council because their businesses have been forced to close or are restricted.
Recognising that almost four in 10 Scottish business owners are worried about their mental health, FSB Scotland is urging those that work for themselves to do what they can to look after their mental wellbeing during the coronavirus crisis, such as turning to the wellbeing hub on the FSB website for support and advice.
However, it also wants the Scottish Government to pilot a new support service specifically for small business owners and the self-employed to prevent a mental health crisis.
The campaign group also urges policymakers at Holyrood and Westminster to put small business survival and recovery at the top of the agenda for themselves and agencies such as Highlands and Islands Enterprise (HIE).
FSB Highlands and Islands development manager, David Richardson, said: “The survey proves that the current lockdown is putting immense pressure on numerous businesses right across Scotland and on those who own and manage them.
“In what is for many their darkest hours, it is vital for the future health of local economies and communities that the Scottish Government and its agencies like HIE place the survival and recovery of all-important small businesses at the hearts of their strategies and top of their agendas. We cannot afford to let otherwise healthy businesses fail just as vaccines are being rolled out, and we must safeguard the mental health of the dedicated men and women who run them.
“This means taking long-term action to keep overheads as low as possible for businesses facing ongoing trading restrictions and a long recovery, and it means getting the grant system working as it should, and channelling funding into encouraging business to innovate out of this crisis.”
In a letter to Finance Secretary Kate Forbes ahead of the Scottish Government budget on Thursday, the FSB has urged Ministers to commit to maintaining coronavirus-related rate reliefs for smaller firms for at least the next two financial years.
The small business group also wants government, councils, regulators and agencies to reduce, freeze or scrap charges and fees until smaller firms get back on their feet, and it makes the case for additional grant funding to be provided to help smaller firms use digital technologies to adapt to the current crisis.
The FSB survey also revealed some differences between the Highlands and other parts of Scotland. While over a half (54 per cent) of Highland businesses are currently closed, voluntarily or because it is required by law, only just over a quarter (27 per cent) of businesses in Glasgow and Edinburgh are shut.
Moreover, more Highland business owners see themselves as really struggling to stay afloat than their city counterparts (Highlands 35 per cent; cities combined 28 per cent).
Conversely, Highland business owners are more likely to believe that they will reopen (78 per cent) than their city counterparts (60 per cent), and they also have more optimistic takes on personal problems like family income, surviving for the next few months, debt repayments and mental health.
Commenting on the differences, Mr Richardson said: “This illustrates the impact of the visitor-based nature of the Highland economy.
"Yes, the picture right now is gloomier in the Highlands, but more businesses here are confident that tourism and hospitality will quickly pick up once travel restrictions are lifted. Until that happens we must keep their heads above water – their survival is vital – and this is not just a matter for governments and the public sector.
"We can all play roles in protecting the beating hearts of our communities by buying our goods and services locally; by keeping trade local. It matters more now than ever before.”
