The Struggles of Small Business Owners: Christina French’s Story
In the heart of Birmingham, Christina French, a 42-year-old entrepreneur, stands at a crossroads with her electrical contracting business, Diverse Sparks Limited. As the founder of this small enterprise, she has dedicated over a decade of her life to building a company that not only supports her but also provides employment opportunities for others. However, recent changes in the national budget have left her feeling uncertain about the future, prompting fears that she may have to sell her business to make ends meet.
The Impact of the Budget Announcement
On a recent Wednesday, Christina watched closely as Chancellor Rachel Reeves delivered the national budget, which included significant changes that would affect small business owners like her. The announcement of a 6.7% increase in the national minimum wage to £12.21 an hour was met with mixed feelings. While the increase aims to support workers amid rising living costs, Christina and many other business owners see it as a double-edged sword.
The budget also included a rise in employers’ national insurance contributions from 13.8% to 15%, along with a reduction in the secondary threshold for this tax. For Christina, these changes are not just numbers on a page; they represent a potential financial burden that could jeopardize her business’s viability.
A Business Owner’s Dilemma
Describing the budget changes as “rubbish” and “awful,” Christina expressed her frustration with the challenges facing sole traders. “I’m considering selling the business now,” she confided, highlighting the emotional toll that financial pressures can take on small business owners. Despite working tirelessly—often 18 hours a day for the past 12 years—her personal wage remains at a meager £500 a month. This sacrifice underscores the difficult choices she faces as she strives to keep her staff employed.
Christina’s concerns extend beyond her own financial situation. She worries that the need to increase prices to cover rising costs could alienate her loyal customer base. “You’ll have sole traders that will be able to charge less, so we’re unable to put our prices up,” she explained. This competitive disadvantage could lead to a loss of customers who might seek cheaper alternatives, ultimately compromising the quality of service in the industry.
The Future of Apprenticeships
One of Christina’s passions is providing apprenticeships, which she believes are crucial for nurturing the next generation of skilled workers. However, she expressed disappointment that the Chancellor did not address support for apprentices in the budget. “It’s rubbish because I’ve created jobs and apprenticeships for the last 12 years, and now that’s not going to be an option for us,” she lamented.
With the current economic climate, Christina fears that small businesses will struggle to offer apprenticeship opportunities, making it increasingly difficult for young people to enter skilled trades. “I get so many applications for apprenticeships because there’s just not enough jobs out there as it is,” she noted. The paradox of increasing the minimum wage while simultaneously making it harder for businesses to hire and train new talent creates a vicious cycle that could stifle economic growth.
A Call for Support
As Christina navigates these turbulent waters, her story serves as a poignant reminder of the challenges faced by small business owners across the UK. The budget changes, while well-intentioned, may inadvertently hinder the very businesses that contribute to job creation and economic stability.
Christina’s experience highlights the need for a balanced approach that considers the realities of running a small business. Support for apprenticeships, tax relief for small businesses, and a more gradual approach to wage increases could help ensure that entrepreneurs like Christina can continue to thrive while providing valuable opportunities for their employees.
In conclusion, Christina French’s journey reflects the broader struggles of small business owners in today’s economic landscape. As she contemplates the future of Diverse Sparks Limited, her story underscores the importance of listening to the voices of entrepreneurs and crafting policies that support their growth and sustainability.