Or so we would hope. Research from our ‘Voice of Small Business’ Survey Panel shows that six out of 10 small firms believe that the London 2012 Games will have no long-term positive impact on their business. This is in spite of the fact that the Games were sold to us as something that would give people and businesses the chance to benefit from its legacy. It is also in spite of the fact that David Cameron has said the UK is "on track" for its lasting legacy.
Many businesses, however, do believe that the Games will give the country a "slight lift" and will increase "general overall positivity"; while others hope it will shift the news focus away from the financial crisis. But many are concerned about the cost of the Games and wonder if, while there will be an increase in tourism, prices might also rise to take advantage of that tourism.
Furthermore, there are concerns that London in particular will become gridlocked, making it difficult to transport goods, and that much investment has been directed away from the regions into the South East.
The picture is also mixed when it comes to whether or not the Olympics will help to grow the economy, with some economists believing it won’t have much of an impact. Recent figures showed that the economy shrank in the final quarter of 2011, but The Office of Budget Responsibility predicts the UK will grow 0.7% in 2012, with the second half of the year being stronger than the first.
Barcelona saw 2.9% GDP growth and Sydney 2.1% when they held their Olympic Games (admittedly, the world’s economy was in a very different place back then). How, though, do you measure the feel-good factor and morale boost that hosting such an event will bring?
With fewer than 200 days to go, the Federation of Small Businesses is calling on the government and Olympic authorities to ensure that small firms are aware of how they can benefit from the Games and the tourism that will come from it.
We know that 46% of Tier One contracts on CompeteFor – the portal for businesses across the UK to win London 2012 contracts – have gone to micro and small businesses. This is an example of best practice, but CompeteFor will be wrapped up after the Games. We feel that this is the wrong decision and so the FSB is calling for the long-term sustainability of the portal after the Games.
A final, encouraging point: it is important to note that the Olympics will open new visitor markets for those who have never visited the UK, and that the Games have seen an unparalleled partnership between national and local government and the private sector in working together to promote the UK abroad. Despite the uncertainty, now is the time to show everyone just what it is that makes Britain great.
– John Walker, national chairman, Federation of Small Businesses
You can read the PrintWeek Briefing that this article accompanied here
