The Federation of Small Businesses is concerned about the ability of small, independent retailers to compete against giant supermarket chains and out of town shopping sites. The group claims that upwards of 30,000 independent stores have shut down in the past decade in Scotland alone due to tight competition. As the trend is likely to continue, the Federation is urging government for more support to small businesses.

Andy Willox, the Federation’s spokesperson, called for an enquiry by the Competition Commission the effect of the presence of giant retailers is curtailing competition in the retail industry. It is likely that the economies of scale enjoyed by the larger retailers are proving to be anti-competitive to the smaller shop owners. The Federation cited the need for government to help small businesses by giving assistance in business planning and support, and tax cuts.

Company formation and business solutions experts are confident that government will heed the call of the small business sector for a healthier and more competitive business environment.

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