Shop small to save local businesses

THE going is getting tougher for small businesses but surprisingly most don’t see big business as the main threat to their survival.

THE going is getting tougher for small businesses but surprisingly most don’t see big business as the main threat to their survival.

Three quarters of small business owners say running a business is getting harder and two in five aren’t sure they’ll be trading in five years.

The Australian Attitudes to Small Business Report, commissioned by American Express for its national Shop Small campaign, reveals that 38 per cent of small businesses, employing between one and 19, see other small businesses as their rivals.

HELPING HAND: Shop Small campaign to save local stores and build community spirit

Federal Small Business Minister Bruce Billson and milliner and Shop Small ambassador Melissa Jackson. Picture: Jason Sammon/ News Corp

Online businesses and e-commerce were regarded as threats by 17 per cent of small businesses.

Just one in four saw “big business” as their biggest competition.

But when the responses were broken down, based on the number of employees, 38 per cent with five to 19 staff said they were being squeezed by the big end of town..

Many were improving their businesses with half concentrating on customer service and 41 per cent having an online or social media presence.

Around one in four were increasing marketing and advertising, negotiating better deals with suppliers and widening their product range.

Federal Small Business Minister Bruce Billson and milliner and Shop Small ambassador Melissa Jackson. Picture: Jason Sammon/ News Corp

Almost 30 per cent said they had to resort to price discounting.

Forming alliances with other businesses, embracing technology and opening longer hours also were being employed.

But 71 per cent said “good old fashioned service” was key to their business.

Retail expert Brian Walker, of the Retail Doctor Group, said small businesses needed to look at what the big players do and do it a bit differently.

“What is super crucial for small business is that they don’t compete on price. They need to compete on service,” he said.

Milliner and Shop Small ambassador Melissa Jackson and Federal Small Business Minister Bruce Billson. Picture: Jason Sammon/ News Corp

He said it might be making an effort to know the name of customers, embracing social media or compiling a data base.

“They need to make it compelling for people to shop with them.” he said.

Federal Small Business Minister Mr Bruce Billson, who attended the Melbourne launch of Shop Small in inner city Richmond where the once thriving Bridge Rd has a third of its shops empty, called on people to unite behind small business.

“For consumers who value a broad range of options and the unique characteristics of a local shopping strip, it is important for them to support thriving and cherished high streets to ensure they don’t become a thing

of the past. It is of our responsibility to ensure that doesn’t happen,’ he said.