Apr 21 - GFSB Carries Out Study Of Small Business Views And Opinions – Rising Costs And Brexit Fears Are Among Main Concerns
During the month of February the Gibraltar Federation of Small Businesses (GFSB) carried out a survey into current small businesses’ opinion on a number of issues, including training and recruitment, access to finance, growth and performance, exporting activities and the potential exit of the UK from the EU. This research acts as a barometer to check on how GFSB members feel about current issues and their impact on local businesses.
The GFSB says that one of the issues that surfaced from the survey responses is the burden of regulation and enforcement, primarily business licensing, with 42% of respondents saying that this was impacting the success of their business. This follows changes in legislation relating to the introduction of the Fair Trading Act. The GFSB says it is currently consulting with the Government to try and resolve these issues.
With regards the potential exit of Britain from the EU, 95% of respondents said they were concerned about the impact of this on the local economy and their businesses. Of those expressing concern 21% said that they were concerned as their business relied on EU imports and 15% were concerned due to employing non-local EU nationals. Over 80% of members are concerned about Gibraltar leaving the EU.
A quarter of respondents were struggling to recruit skilled staff, however 80% of businesses were providing professional and academic training and qualifications in order to train up their staff to the required level.
The survey also found that it had been a tough year for businesses, with a third of businesses experiencing a decline in profits and 27% retaining similar profit levels as the previous year. However, 22% saw profitability increases in the same period. The main barriers to growth listed were the economic landscape, increased competition and the rising cost of regulation and overheads.
The survey also found that, in the light of increased competition, many businesses are upping their game when it comes to promoting themselves, with the majority of companies using the internet and social media to promote their products and services and a move to conducting as much business as possible (from purchasing of goods to conducting market research and customer communication) online. The study also revealed that any e-government initiatives are also welcome – although there is a long way to go with only 1 in 4 businesses using the e-Gov portal to pay business licenses, make MOT appointments etc.
Although access to finance has improved since the introduction of the Gibraltar International Bank, 14% of respondents were unable to open a bank account in the past 12 months and 5% struggled to secure loans or long-term finance. The GFSB is organising an access to finance breakfast event on the 27th April to showcase all the different financing options available to businesses.
The GFSB says the survey has been a useful tool which will help the GFSB in its continued lobbying work to safeguard the interests of small businesses. It will continue to consult with Government to ensure that members’ views are heard. For more information on the GFSB, its activities, and advantages for members, call 20047722.
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