Five ways local councils can help small business owners

This article highlights the essential role local government plays in supporting small businesses and strengthening local economies by utilising initiatives like enhancing digital skills, modernising payment methods, facilitating networking opportunities, and promoting funding resources. A local council that is connected with its community and understands the needs and wants of locals, can ensure its local town is a thriving hub of entrepreneurship and business success. 

Why the government encourages enterprise

With an estimated 5.6 million small businesses in the UK, small, local businesses form the foundation for a thriving local economy. They form the bedrock for communities, providing valuable services people can rely on and offering opportunities for people to connect. Whether it’s a tearoom or pub, a bookshop or handyman store, people love and trust small local businesses.

Local councils play a vital role in supporting small business owners to improve their communities, open the door to new opportunities, cater to the needs of locals, revive town centre performance, and work to ensure town centres are safe and enjoyable places to be.

How the local council is supporting small businesses?

Most local councils understand the importance of championing their small local businesses because they give our communities so much.

According to GovPilot, “Local governments have much influence over the success or failure of local businesses and should do all they can to ensure these businesses prosper, not only for their own benefit but for the benefit of the entire community.”

Here are just some of the ways local councils can come alongside small business owners and work to help local businesses in the ways they need most for the betterment of their community.

1. Helping retailers further their digital skills

Retailers continue to provide one of the most sought-after services on our high streets to date. However, with the convenience of online shopping, many local retailers are having to close their doors to the public due to a lack of in-person business and the impact of the cost-of-living crisis – shoppers have less disposable income.

Local councils have a key role to play in the revitalisation of local retailers and one of the most important ways they can offer their support is through the provision of digital training and infrastructure.

As customers demand increasingly user-friendly online services, retailers are struggling to keep up. However, with the right support, retailers can develop the skills and infrastructure they need to meet demands and provide a valuable service to customers that thrive both in-person and online. See how Aberdeen City Council has been pioneering digital transformation in its schools, retailers, and public services.

2. Updating outdated payment methods

The way consumers pay for products and services is changing. Writing cheques is now a thing of the past and, for many customers, so is using cash. One-third of UK adults now use mobile contactless payments to buy things. So, it’s no surprise that most shoppers expect to use a mobile card reader when they are purchasing products in person.

As part of the digital revolution of small local businesses, councils must educate business owners on the advancements in payment methods so they are better equipped to serve their customers and secure more sales locally.

3. Creating spaces for local businesses to network

One of the reasons small businesses typically fail is due to lack of help. And we’re not referring to a lack of help from customers (although this is important) we’re talking about support from other small businesses.

Networking is one of the most powerful things small business owners can do. It opens up opportunities and connections that would otherwise go unexplored.

Whether it’s the potential for working with other businesses, gaining new customer leads, partnering or collaborating with complimentary brands, or gaining access to resources that will contribute towards business growth, networking offers a whole host of benefits and opportunities that can help small local businesses thrive. When everyone is involved and collaborates together, this leads to community-centred growth.

Councils can help networking efforts by hosting networking events (a great way to do this is to join The Federation of Small Businesses, the UK’s leading small business organisation, who are dedicated to empowering small businesses across the UK).

Councils can also organise online and physical meets where local business owners can network with each other, exchange ideas and advice, and just generally prop up each other. When local councils are involved in networking events like these they can also benefit by learning the challenges local business owners are facing and addressing these sooner.

Local business spaces, like markets, are more than just a trendy space, they can be vital community hubs. Check out LGIU’s in-depth member-exclusive briefing on this topic 🔒

4. Advertise opportunities for funding

Local businesses need better funding. They need to be connected with the courses, funding opportunities, and resources that will help their businesses thrive. Unfortunately, many small business owners are unaware of the funding that may be available to them.

As such, it is the job of local councils to actively inform local businesses of the many available opportunities for funding and financial advice. The council should also work to facilitate better access to these grants for small business owners, helping them gain the funds they need to grow their businesses.

In addition, local councils could organise fundraising events in support of local businesses and use the money raised to fund grants that would otherwise be too expensive. This is a great option for local councils wanting to strengthen their small, local businesses and get the community involved in the process.

For LGIU members, we explored how local market around the world can help revitalise urban centres 🔒

5. Supporting local businesses in their marketing efforts

Council communication channels offer a great space for the advertisement of local small businesses. Not only does advertising in these public spaces provide an extra profile for business owners, but it is also a way for the local council to actively show their support of local businesses.

Taking things a step further would be for councils to host monthly webinars in partnership with local businesses. These could involve presentations from small business owners on entrepreneurship or they could be more loosely based on question and answer sessions. Again, this is a great way to raise awareness and help customers learn more about the people behind the businesses they love.

Humanising brands is one of the best ways to attract more customers and gain customer loyalty. In fact, according to Sprout Social,

“More than three quarters of consumers (76%) say they would buy from a brand they feel connected to over a competitor, and 57% say they are more likely to increase how much they spend with a brand when they feel connected.” So, when local councils are making those connections and utilising their far-reaching platforms to promote local businesses, success is a sure thing.”

Check out LGIU’s case study from Scotland Loves Local on how vital the support really is for creating sustainable change.

Lending a helping hand can make all the difference

Our small local businesses are the foundation of our town and city centres. Local communities rely on them and feel connected to them. And with the right support, local councils can ensure small businesses remain as the beating heart of our town centres.

When local councils are connected with their local communities, they have a good understanding of what people want. Using this knowledge, councils can equip business owners with the training, funding, and support needed to provide a service customers cannot do without.

Writer Gemma Williams actively contributes to conversations about career development, workplace culture, and the future of work. She is dedicated to creating resources and platforms that provide meaningful connections and support career growth. After gaining experience in various HR roles, she now turns her focus toward growing her personal brand and connecting with leading experts in the industry. If you would like to know more, you can follow her at @GemmaWilliamsHR or take a look at her website.