Cost of living crisis: small businesses in the South West struggling to recover due to rising costs and lack of investment

Over 69% of small businesses in South West England say they are experiencing rising energy and utilities costs, whilst over a third are seeing their business finances stretched, according to new eBay UK research[1]. Unfortunately, it looks like these costs will only continue too, with over half (57%) of respondents saying that these rising costs are likely to last over a year.

Other issues are also continuing to present their challenges, with small business owners in the region citing inflation, the energy crisis, wage inflation, and lower consumer demand as the most prominent issues their businesses expect to face in the next year.

This research comes as eBay brings its Business Roadshow to the China Fleet Country Club this Thursday 13thOctober 2022. Grants and support packages will be available for attending small businesses, alongside advice for growing and scaling an online business in today’s difficult business climate.

This new research also found that a quarter of South West small businesses are concerned about the future of their business, with over half (56%) saying that they would support greater access to capital or finance. Moreover, nearly 40% agreed that their business cashflow is unpredictable; a fact that is only exacerbated as the cost of living crisis intensifies.

However, there is a clear entrepreneurial spirit within the region, with over 65% saying it is a top or high priority to reinvest profits to grow. Continuing to offer assistance to entrepreneurs looking to start up and scale their businesses will therefore become increasingly important over the remainder of the year.

eBay Business Roadshow

Small businesses attending each of the 12 regional Roadshows will be exclusively invited to apply for grants and support packages from eBay, the total value of which amounts to £1 million. This will be made up of two parts, with up to £250,000 available as grants, and up to £750,000 available as ‘Start and Scale Packages’ to support small businesses to set up and grow through eBay. Each winner will also get 1-2-1 mentoring with an eBay ambassador, over the course of one year, to help them accelerate growth.

Small businesses can sign up to attend the event here

Murray Lambell, General Manager, eBay UK said: “Whilst the current cost of living crisis is challenging for small business across the UK, what’s truly impressive is the resilience of small businesses and the innovative ways in which they are continuing to grow and attract new customers. This is particularly true for businesses in the South West, so I’m really excited to bring the eBay Roadshow to Plymouth this week.

“We developed the Business Roadshow to help small businesses and entrepreneurs build on their skills, not only through the offer of financial support, but through the chance to meet and share stories with like minded business owners and hear from industry experts too. The South West has always been home to a rich entrepreneurial spirit and I have no doubt it will be a great event.”