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5 Feb 2024

The Federation of Independent Retailers (the Fed) has expressed alarm at new figures that show shoplifting at its highest level in 20 years.

5 Feb 2024

A brand-new festival is being launched next month is “all about community and breathing life into the High Street”, according to Mark Kacary, managing director of The Norfolk Deli in...

5 Feb 2024

The retail sector has been responding to government plans to ban disposable vapes as part of plans to tackle the rise in youth vaping.

23 Jan 2024

Bakers, butchers, cheesemongers, delicatessens, fishmongers, greengrocers, village stores and small farm shops from around the UK have been shortlisted in the Farm Shop and Deli Retailer Awards...

23 Jan 2024

An interesting article has appeared in Forbes reflecting many of the issues that Indie Retail & ActSmart members will be experiencing – the challenges and...

22 Jan 2024

Eight in ten small business owners (81%) are planning to develop their companies in 2024, according to new research from Novuna Business Finance. The research shows that over a third (33%) are...

22 Jan 2024

The Times has named 12 of the UK’s best independent bookshops — as chosen by its readers. Readers highlighted places that combined books with a friendly and welcoming atmosphere....

22 Jan 2024

The British Independent Retailers Association is championing the high street again this Valentine's Day for the second consecutive year with its #LoveYourHighStreet campaign.

10 Jan 2024

Nads Store, a family-run shop in Law, Lanarkshire, has been named Community Retailer of the Year at the Scottish Asian and Business Awards ceremony for the second year running.

10 Jan 2024

In the face of the escalating threat of loan fee fraud, the British Independent Retailers Association (Bira) is urging its members to heed the Financial Conduct Authority's (FCA) recent guidance...

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GoFundMy Business: The Cash-Strapped Small Business solution?

Posted on in Business News , Cycles News

GoFundMe is a crowdfunding website that aims to harness the power of social networking platforms and the internet to give people the means to raise funds, help others overcome hardship, and meet aspirational goals. It is generally known as a way to raise money for high medical bills, funeral costs or natural disaster relief.

However, according to the GoFundMe Chief Executive Rob Solomon, the crowdfunding website has recently been used as a method for small businesses to raise funds that are cash-strapped and struggling. So far campaigns for small businesses have opened across 19 countries, ranging from comic-book shops to drive-in movie theatres.

The crowdfunding website was a great success for Nicky Perry, a small business owner who owns the restaurant Tea & Sympathy and the fish-and-chip shop A Salt & Battery in Greenwich Village. She started the funding because of high rent costs "We just couldn't pay the rent," Ms. Perry said. "The rent is so astronomical."

Ms. Perry said that she had previously tried extensive ways to cut costs, including changing payroll companies, reducing head count and redesigning its menu. The reaction to her fundraiser has been overwhelmingly positive, with loyal customers stopping by the shop more often and neighbours offering to help out by working for free.

Her campaign has so far raised nearly $52,000 toward its $100,000 goal. She has said that she would consider turning to GoFundMe again in the future should the need arise again.

While there have been multiple case studies of this being an effective method for businesses to raise money and has even kept many businesses alive, not all reactions have been positive. 

One comment on The Wall Street Journal said "I don't believe that businesses seeking charity are operating as legitimate businesses.", while another explained their beliefs by saying "The contradiction between feel good funding and feel good regulatory burden is inadequately elucidated."

Similar campaigns have been used for struggling businesses that need help but don't feel comfortable asking customers for donations. Chris Doeblin, owner of an independent bookshop in Manhattan, has recently started a community lending program after competition from Amazon, rising rents, the increasing minimum wage and an inability to borrow money pushed him to the brink of closing.

Mr. Doeblin has raised $600,000, which he plans to repay within five years at 4% interest, which is a far lower rate than he could get elsewhere. The support he has received from loyal customers will help him stock up for the busy Christmas season.

"People are recognizing that there's a big downside to Amazon and buying things online," he said. "I hope it's not too late."

Initiatives such as the Indie Retail Best Small Shops competition help to bring more attention to independent retailers and highlight the central role that they play in building local communities. As this awareness increases more positive articles have begun to emerge, such as recent evidence showing that the 'death of the high street' may be overstated.

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