NEW protection will be needed to help the self-employed in the North-east recover from the Covid-19 crisis, according to the Federation of Small Businesses (FSB).
More than 31,000 people work for themselves across Aberdeen and Aberdeenshire according to official figures analysed by the Federation of Small Businesses (FSB) ranking Aberdeenshire fifth and Aberdeen eighth in Scotland in terms of the number of self-employed.
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Research has revealed that three fifths of business owners in Scotland say that the Covid-19 crisis has made self-employment less attractive.
Around a third of small businesses were forced to close during the crisis, and thousands of Scottish firms have taken on billions of pounds of government-backed debt.
David Groundwater, the Federation of Small Businesses’ (FSB) North-east Scotland development manager, said: “The events of the last fourteen months or so have undermined the strength and contribution of self-employed people and the small business community right across the North East- all 53,915 in Aberdeen and Aberdeenshire.
“However, FSB research shows over three-fifths of Scottish businesses believe that covid has made working for themselves less attractive.
“At a time when everything possible should be being done to nurture entrepreneurialism and business growth, it is also very concerning that only just over one-in-five businesses believes that the Scottish Government values the achievements of the self-employed.
“At FSB, we want the next administration at Holyrood to pilot a new collective insurance approach for self-employed individuals who could not otherwise access sick pay. We’d also like policymakers to provide maternity, paternity and adoption payments to the self-employed via Social Security Scotland, similar to a successful Dutch model. This ‘bread-fund’ would cover the sick pay for all who contribute, removing the worry and pressure experienced by many small-business entrepreneurs.
“We will also continue to push for the next Scottish Government to deliver a Small Business Recovery Act, covering a host of new laws designed to ensure smaller firms win their fair share of public contracts.
“No matter the colour of rosette in the up-and-coming election, addressing these issues and bolstering morale through the introduction of some important new measures should be the number one priority for all candidates and the new Scottish Government.”
Ramona Obafemi who runs Aberdeen-based Mad Potato, said: “Starting my business is one of the best decisions I’ve made, but it’s not been without it’s challenges, particularly over the last year.
“Unfortunately in that time I’ve had to sell one of my businesses due to Covid-19 and completely agree with the FSB that new pilot schemes that help reduce the risks, by giving extra protection to those considering self-employment, is a great way of helping the recovery, reigniting entrepreneurism and helping small traders like Mad Potato to grow.
“We need to acknowledge the important part start-ups will have in the recovery process and give them the right support to get them through the uncertain markets during these unprecedented times.
“We used to have a high rate of businesses failing in their first year prior to COVID-19, you can only imagine what a start-up has to go through now.”
