MANY Devon businesses don’t know which way to turn, as they continue to struggle with recruitment difficulties on top of rising costs of commodities, energy and fuel.

Businesses in hospitality and leisure especially, mainstays of Devon’s local economy, are continuing to find it difficult to recruit, says Stuart Elford, Chief Executive of Devon and Plymouth Chamber.

This is partly because property is too expensive and out of reach for people on lower incomes, so they are unable to move to where the vacancies are.

Prior to the war in Ukraine, it had become more common in busier tourist areas of the county to see employers – restaurant and café owners – paying taxi fares for staff to travel-in from locations outside the area, in order to fill vital vacancies.

But now with the rising costs of fuel, even that is becoming difficult to afford for cash-strapped firms.

“It’s been just one thing after another,” says Stuart.

“No one expected the pandemic, of course, but businesses had to adapt immediately to stay afloat.

“They diversified. They changed their business models to new ones that worked as best they could in that climate. They took opportunity from government grants, but their regular clientele largely disappeared during the restrictions, and many staff left, were laid off, and have not returned.

“Many businesses took out loans to help them diversify, to see them over the hump not knowing how long that was going to be. Many used up any financial savings or reserves they had, in the promise of better times around the corner.

“And having quickly adapted to that challenge, the goal posts have now shifted, and businesses are having to change again to adapt to rising fuel costs, and costs of living.

“This time, I fear it’ll be the final straw for some. While members of Devon and Plymouth Chamber are three times more likely to survive than those that are not, we will see some businesses throwing in the towel.”

But not all. Devon County Council’s ‘Growth Hub’ helps support local businesses.

Some 97 per cent of Devon’s economy are small to medium sized businesses, and 90 per cent of those have fewer than 10 employees.

Cllr Rufus Gilbert, cabinet member with responsibility for economic support, said: “We see a lot of sole traders and small to medium sized businesses with few employees struggling with this dilemma, whether now is the right time to grow and have their costs grow too.

“The uncertainty in not knowing how long and how deep these rising costs will impact on them is holding many back.

“Through our South West Growth Hub, which provides business support and advice to Devon firms, we’re seeing a steady increase in the number of businesses looking for additional grants or finance.”

Since April 2021, the Growth Hub has supported over 1,200 businesses and many more are reaching out.

“They want to buy new equipment and new machinery. They want to become more energy efficient, for environmental reasons, and to save money in the longer term,” says Cllr Gilbert.

“They’re ready to invest, but they’re uncertain about the future and rising costs.”

He continued: “We are suggesting to businesses that they look at their current business plans, in light of the current economic climate, knowing what the challenges are right now, knowing what the risks are and the potential gains, and ask themselves whether their current plan is realistic.

“People forget that even applying for business grants or loans require a solid business plan, and without one, they’re less likely to be successful. Even writing the bid can be challenging for businesses that haven’t applied for funding before.

“Thrive support service can help with business planning, financial planning, support with staff training or recruiting, and the use of digital technologies to help local firms gain a firmer footing to adapt again to these latest challenges.”

The council is working closely with the Federation of Small Businesses, to provide two in-person events specifically for the hospitality and leisure industry in Devon, to discuss and offer support about recruitment and retention of staff.

For more information about the two events, being held on Thursday September 15 and Thursday September 29 visit www.heartofswgrowthhub.co.uk/spotlight-on-devon-businesses/