Saturday 20 Apr 2024
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SINGAPORE: When it comes to British cities, I must admit to being quite partial to my current home city of Norwich.

Aside from its lively vibe and friendly residents, what I also love about this East Anglian city is its winding medieval streets and historic buildings, which house quirky boutiques, vintage shops, cosy cafes and trendy restaurants.

And it’s not just those of us living here who are enamoured by the Norwich Lanes, as these series of streets are called.

Norwich Lanes has just won the City category of the inaugural Great British High Street of the Year Awards, beating the likes of Bristol’s Park Street and Glasgow’s Style Mile.

The award recognised not just the efforts of the area’s business leaders in developing a strong brand, but also for their dedication in supporting local traders.

There are more than 300 independent small businesses in the Norwich Lanes that will benefit from the greater profile this award will bring to the area.

The government-backed Great British High Street of the Year Awards is among recent attempts to boost the UK high street, which has been hit hard in recent years by the economic recession as well as the growing migration of shoppers to online retailers as well as out-oftown shopping malls.

An effort to help local small businesses in particular is the Small Business Saturday initiative.

A US retail import along with Black Friday and Cyber Monday, Small Business Saturday was introduced in the UK last year by Shadow Business Secretary Chuka Umunna.

He was inspired by endeavours across the pond to recognise the contributions of small businesses to their local economies as well as to level the playing field with retail giants.

It’s not hard to see the appeal of Small Business Saturday, which just had its fifth successful year in the US recently on Nov 29, the first Saturday after Thanksgiving, one of the busiest shopping weekends of the year.

In the US, it receives a high profile, endorsed by President Barack Obama who is seen shopping with his family at local bookstores to promote the event.

More crucially, Small Business Saturday helps bring in the much-needed footfall and sales.

At this year’s event in the US, some 88 million shoppers frequented small businesses, a 14.9% increase over last year.

American consumers aware of the initiative reportedly spent US$14.3 billion ($18.7 billion) with independent businesses on the day, up 2.1% from the previous year’s $14 billion, according to a survey conducted by the National Federation of Independent Business and Small Business Saturday sponsor American Express.

Here in the UK, however, Small Business Saturday has a much lower visibility as it is a grassroots campaign independent of any particular political party, and hence has limited funds for publicity.

Still, its organisers and the UK government considered its first outing on Dec 7 2013 a success, as more than £469 million was spent in independent businesses on the day itself.

This year’s Small Business Saturday in the UK takes place on Dec 6, along with its derivative Shop Local Saturday, and consumers are being encouraged to switch their custom from the big retail chains to help support local independent businesses.

Aside from offering special discounts and offers, promotions for Small Business Saturday and Shop Local Saturday remind shoppers that for every £1 spent with an independent retailer, between 50p and 70p is channelled back to the local economy.

But would this effectively incentivise more people to buy from their local stores when their shopping could be done cheaper at the nearest branch of a big retail chain or from online stores? Small business owners face not just increasing pressure from such intense competition, but also the impact of soaring business rates.

A form of tax charged on non-domestic properties to help fund services in a local area, business rates are believed to have gone up by 25% since the onset of the financial crisis in 2008, hitting many businesses hard as a result.

Ahead of last week’s Autumn Statement, several business groups submitted a call to the Chancellor of the Exchequer for a total overhaul of the business rate system, amid complaints that the rates are based on out-of-date valuations and do not take economic cycles into account.

The growing number of online businesses also puts to question the relevance of such taxes imposed on the physical space used by companies.

The UK government capped business rate rises at 2% last year as a relief for struggling businesses.

Many, however, contend that there is still a need for rates to actually be reduced, or even abolished altogether in the case of smaller businesses, as they are hampering much-needed growth in companies.

At the end of the day, small businesses should be celebrated, particularly those on the high street.

They bring diversity and character to city centres that would otherwise offer the same products and services from the same chain stores and eateries, no matter which city one is in.

More importantly, they bring a sense of connection with the local community, a chance to contribute towards the local economy that will ultimately benefit all residents.

No doubt more still needs to be done for independent businesses, but what they ultimately need is the support of the most crucial party — the consumer.

That is why I aim to be out on the Norwich Lanes on Dec 6, celebrating our city’s win by shopping with small local businesses.

This article appeared in the Corporate of Issue 655 (Dec 8) of The Edge Singapore.

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