As of 2021, there are 5.82 million small business in the UK. A small business is characterised as having 0-49 employees. Small businesses are vital as they offer opportunities for entrepreneurs and produce meaningful jobs with a greater sense of job satisfaction than those at larger companies. It can be said that small businesses are the foundation of the UK economy. However, research has shown that 55% of small and medium sized  companies survive no more than five years; those that did faced extreme obstacles to achieve expansion with around 63% of proprietors admitting hardships in growing their business and just over 60% remaining unsure of the feasibility of attaining 3 year growth.

To get a more in depth idea of the reality of owning and operating a small business, I spoke to Hus Veli, the owner of Orsum-Art, a local greetings card business.

What inspired you to open your own business?

“I already work as an animator and I just do designs in my spare time. I came across a website called Red Bubble where you can upload your designs and put them on products which get sold by Red Bubble. I made a TV-show based birthday card design for red bubble and it started selling regularly. It gave me the idea that I could monetise designs that I make rather than it just being a hobby.”

What is the most challenging aspect of running your own business?

“My business is multi-faceted so there’s several components; it’s not just designing cards. I have to do my tax returns, order supplies, manufacture the cards, stock keeping and also customer relations. There are many aspects to it rather than just designing the cards. The most challenging aspect was when I first started the business as money was low so I had to try and find a balance between doing everything myself and outsourcing.”

Why did you decide to make greetings cards?

“Greeting cards were selling very frequently as a product on red bubble and it was an easy way to get my designs on to a product that has a low cost value. For example, if I tried to get them on phone cases and posters they would cost more and fewer people would buy them compared to greetings cards which sell for £2-£3.”

What advice would you give to someone who wants to open their own business?

“I started as a limited company from the get go which comes with additional costs and paper work because I wanted to come across more professional to customers. However the reality is that it hasn’t made much difference so my advice is if you are starting out and your income is low it would be easier to start off self-employed rather than starting a limited company.”

When you first opened your business how did you minimise start-up costs?

“It depends on your business and whether you are selling goods or offering a service and whether you need an office or you can work from home. In my case I was able to work from home and there will be certain equipment you need that you can’t minimise the cost of like a crease machine which folds the greeting cards for my business. However, areas where you can minimise your costs include your inventory. If you buy in bulk then the unit cost comes down but you might not want as many since you don’t know how your business will work out if you are just starting. Even though you get a better value for money buying in bulk I would advise you to buy inventory in small quantities. Despite the unit cost being higher the capital expenditure is lower.”

Evidently there are numerous facets to running a company and there is a lot of trial and error involved. The long-term impact of coronavirus on some small businesses has been devastating with the Office for National Statistics reporting that 396,155 businesses folded in 2020, and another 250,000 small businesses are expected to shut down this year, according to the Federation of Small Businesses. This is despite the help of government grants. However, the havoc of coronavirus has led to the emergence of new businesses, such as courier services, property maintenance and home baking companies. Coronavirus continues to cast uncertainty across the future of small businesses and their ability to adapt to a new world will surely dictate their success or demise.