Help has been vital for firms' survival but more needed, says Wolverhampton business leader
The leader of a group representing small and medium-sized businesses in Wolverhampton says that the support given to his members through Government schemes to help them through the coronavirus pandemic has been vital.
But Sham Sharma, chairman of Wolverhampton Business Forum, is warning that many city centre businesses may still not survive if further support is not given over coming months.
Mr Sharma, owner of Zuri Coffee in Lichfield Street, received £25,000 through the Retail, Hospitality and Leisure Business Grants Fund and he praised the “excellent” work that Wolverhampton’s city council had done to ensure businesses received the help they were entitled to.
“The forum highlighted to the council that there were some businesses that didn’t know they could get assistance like market traders,” he said.
“Many of our members have accessed the support available through the Small Business Grants Fund and the Retail, Hospitality and Leisure Business Grants Fund, but trade is not recovering to pre-Covid levels.
“In my case we are only at about 80 per cent – well down on the same period last year.
“The key problem for city centre businesses like mine is that the university and Grand Theatre are not reopen yet and many big company offices are not fully open. It is clear that many businesses here are going to need further support to stay open,” said Mr Sharma.
He used part of the £25,000 he received to adapt his independent coffee house,which was closed from March to July, to enable customers to eat in safely including putting in ‘bubble’ cubicles.
“It has also helped with paying the rent for the premises,” said Mr Sharma, who warns that rents are going to be a key problem for many small businesses in Wolverhampton and neighbouring towns.
“Landlords are not budging on rent levels and businesses like mine will have to reassess in February when annual rents come due again on whether they should stay in the city centre or move out to cheaper premises,” he explained.
Mr Sharma also said he feared a big increase in redundancies from small and medium-sized businesses when furloughing finally stopped in October.
“Before the pandemic we were employing 10 people part time, but with current levels of trade I’m probably only going to be able to keep on two.
“I fear businesses across city centres are going to be looking at similar levels of redundancies,” he added.
Mr Sharma said that the forum’s members were grateful for the the assistance the Government had given but businesses would continue to suffer if further help was not given.
The next unemployment figures, due on September 15, are expected to show the impact of a series of redundancies that have already been announced particularly in the retail sector.
The Labour Party is also warning that its research indicates that the West Midlands is at risk of being hit hard by redundancies because it has a high proportion of manufacturing workers.
Almost 12 per cent of the region’s workforce is in the manufacturing sector.
