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It’s essential for HR leaders to get behind businesses that need it most, says business owner and strategist Angela Vithoulkas.
Trouble began for SMEs with the pandemic, where two-thirds of businesses reported decreased revenue. Hospitality was hit especially hard, with 71 per cent experiencing difficulties.
Talent shortages were next to hit, with over a third of small to medium businesses reporting staff shortages. Meanwhile, CBD businesses have taken an unexpected hit with remote working policies, as customers aren’t around to make purchases.
These factors, as well as the rising cost of living, have experts saying that small businesses will continue to hurt. So, what can we do to help?
Business owner and strategist Angela Vithoulkas said supporting local and small businesses is key to keeping struggling employers afloat.
“I would encourage anyone listening next time you go into a small business. Have a look around at that small ecosystem that it occupies because many small businesses are front facing, and they tend to build up a customer database or a customer service area that’s geographical and landlocked,” said Ms Vithoulkas.
“It’s where people go every day. It’s your habits. And as soon as that ecosystem, that tiny little area around it is disrupted, say a building shuts down for refurbishment, everybody that worked in that building now goes and works somewhere else.”
This is the trouble that CBDs are having with remote working policies resulting in a decrease of potential customers.
“If they aren’t seen and if they’re not frequented, then they don’t have a business. And it’s that kind of change that the CBDs have seen,” Ms Vithoulkas explained.
“The suburbs are different. Those high streets have reacted a little bit differently because if you’re remote working or working from home a fair bit, that doesn’t mean you’re not going out and getting a coffee; you’re going somewhere else to get that coffee.”
Supporting your local is key, said Ms Vithoulkas: “Local means lots of things to different people. But I think wherever you are based, whether you work from home or you spend some time in the office … remember that it’s that locale that helps small business thrive and survive.”
“So, every time you might think of a bigger chain, think of the smaller chain [that] will appreciate and have that kind of support that then feeds other stakeholders in that local area.”
Hospitality has been rocked hard by these challenges. One of the first to close during the pandemic, and an industry that survives due to their geography, support for your favourite café or local takeaway is crucial to survival.
Ms Vithoulkas continued: “I spent a couple of decades in hospitality, very hands on, managing, you know, 30 or 40 businesses and hundreds of staff at any one given time. And I promise everyone listening, not much changes in business. The problems that I had from a very younger age in business to when I was quite a bit older were always the same.”
“It was overcoming cash flow. It was overcoming the economic hardships of the peaks and troughs of a business. It was always about red tape. Nothing has ever changed there.”
“People have always been a big challenge for a small-business owner. We don’t often have skills to cope with our own people or customers. Generally, the skill set or the love or the talent of a business owner is on something that they’re good at, that they’ve turned into a business. And that was one of the hardest lessons that I learnt growing up and growing into a business owner was how to let go, how to delegate, how to encourage my team to be better than me,” she said.
Empowering employees can have significant benefits for small businesses, said Ms Vithoulkas.
“A lot of business owners have an ego, and they don’t think anyone can do their job better than them. And that’s a really bitter pill to swallow when you wake up and realise that you’re not the best at the job. There are people that you employ that are better than you. And often, instead of celebrating that skill set and how smart are we for hiring them, we get resentful of it.”
“So, I often like to encourage other small-business owners or whichever size you are to recognise the talent that’s around you and not just encourage it, but leverage it. They are there to grow your business, and if you give them that flexibility and that encouragement and that freedom, all you’re going to see is more productivity for your business and then really growing and coming into their own,” she outlined.
“Often business owners are scared that if they do support their people, they’ll become too good for the business and go somewhere else and get another job. Yes, that does happen. And that happens a lot. But guess what also happens? They come back.”
Treating staff well and keeping them happy can help to mitigate the challenges small-business owners are facing at the moment.
Ms Vithoulkas concluded: “Business owners don’t get that their staff is another stakeholder in the business on par with their customers. If you gave your staff the same love you give to your customer, you are going to see the same result.”
The transcript of this podcast episode was slightly edited for publishing purposes. To listen to the full conversation with Angela Vithoulkas, click below:
Jack Campbell
Jack is the editor at HR Leader.
