Two in three Lancaster residents say they will shop local to support small businesses, reveals survey

Many businesses across the UK have been plunged into the depths of economic despair due to the coronavirus pandemic.

In fact, between March and June 2020, 649,000 UK employees were left unemployed as a result of lockdown.

Small and medium sized businesses are the backbone of the economy, but it appears many would-be entrepreneurs are now too afraid to start their own business, given the uncertainty of the economy over the next few months and possibly years.

InvestingReviews.co.uk conducted a survey of 3,000 adults which revealed that just over one in 10 (14 per cent) would-be entrepreneurs in Lancaster would consider starting their own business now.

With the pandemic showing no signs of easing any time soon, the majority of people would hesitate to invest money into establishing a new business in such an uncertain national economic climate.

While this pattern applies across the UK, those in the north are the most pessimistic than others, whereas Londoners are the most optimistic with 24 per cent of them seeing new business opportunities.

The pandemic has also created a shift in consumer behaviour with perhaps a silver lining and heart-warming statistic to emerge that 63 per cent of Lancaster residents say they are making efforts to shop at and support local businesses during this time, rather than large franchises and chain stores.

Products and materials sourced closer to home are usually more sustainable as they produce fewer carbon emissions, and they can also be more expensive – but higher quality – than those you may find at large chain stores.

Despite this, nearly half (49 per cent) of respondents say they would be prepared to pay a premium for local products, rather than buy cheaper ones at larger retailers, given the severe strain on local businesses at the moment.

If you are an entrepreneur, there are some benefits to working from home on your own terms, such as no daily commute. However, there is no denying the loneliness that can arise as a result of working on your own without the company of colleagues.

In fact, more than one in three (36 per cent) entrepreneurs who have been working from home say they have realised they prefer working with colleagues due to the loneliness of being on their own.

"When thinking about starting a business, it is of vital importance to assess the investment risks involved, especially considering the current state of the economy – not just in the UK but on a global scale,’’ said Peter Field, editor at InvestingReviews.co.uk.

"There is no question that right now is a difficult time to take a financial risk, however, the crisis will also present new opportunities for entrepreneurs, which will help drive the economy in the months and years ahead."