By Sean Stringer
With the announcement of a nationwide financial crisis, fears were raised about the effect it threatened to have on the future of both local businesses and more established nationwide organizations. With the public spending less money, due to the fact income is said to be 10% lower than it would be if the financial crisis had not come about (source – http://www.thetelegraph.co.uk) the impact has been great with businesses of all sizes losing out on income. Although the larger, more well known organizations would have felt the ‘pinch’ they did not have the same fears that were held by the smaller companies, time would prove they under-estimated the severity of this ‘recession’.
Since 2008, figures have been released that show the larger businesses have been impacted massively by the recession, and larger well known companies now find themselves having to close down branches more and more regularly, even now in 2010. Well known clothing company GAP have had to close around 85 stores nationwide, and Footlocker was perhaps hit the hardest of all well known chain stores and had to stop trading in more than 140 stores nationwide. These are massive numbers and will inevitably result in the loss of profits for the companies and could also threaten their future. (source – http://urbanlegends.about.com/od/business/a/store_closing.htm)
In an interview Elaine Brown, the owner of a local business in Fife, had this to say about the ‘recession’ and the effects it has had on trading over the past few years:
“When the recession was initially announced and financial figures were released, immediately my husband and I were concerned. However, almost 2 years down the line the impact has not been as great as we thought it would be and over the past few months business has been as good as it has ever been.”
It is clear that there are more examples of larger organizations – banks and shops alike – struggling because of the recession, compared to smaller local businesses. Although this could be down to the fact that these larger companies are under more scrutiny and receive more media attention than smaller businesses, facts and figures that have been released over the past few years prove that the progress of the larger businesses has in fact been less impressive than that of the smaller local businesses.
As the image shows, there are businesses closing down even now in 2010 and it is likely this trend will continue in the coming years.