As Small Business Saturday rolls around for another year, at The Royal Mint we have been thinking about ways in which coins are still tremendously beneficial for businesses.
The day itself is grassroots, and a non-commercial event, which highlights small business success and encourages the British public to 'shop local' and support small businesses in their local communities.
Small Business Saturday takes place on the first Saturday in December every year, (this year it’s Saturday 7th December), and the group behind the event aims to have a lasting impact on small businesses. In 2018, Small Business Saturday generated a staggering £812 million for small businesses across the UK.
No one understands the importance of coins for small businesses like The Royal Mint.
Interestingly, research from the British Chambers shows that 30% of small businesses in the UK remain dependent upon access to cash, and 26% of those don’t think their community has the infrastructure in place to go completely cashless. Findings also reveal that the smallest businesses in the UK, such as catering, car washes, childcare or house cleaning, handle an average of £731 a week in cash, with this remaining one of their most commonly (59%) accepted methods of payment.
Mike Cherry, the National Chairman of the Federation of Small Businesses has discussed how cash is still essential for many, recently he highlighted how “millions of small firms have customers who want to pay using notes and coins. The vast majority of shoppers either use cash frequently or want to see access to it maintained.”
But if you are a business, what are the benefits of cash?
The key benefit is that payment is received immediately. Small business owners have the cash to hand and it is easily accessible – no waiting for cheques to clear or invoices to be paid.
Alongside this, the risk of fraud is very small, especially with new security measures being incorporated into UK coins and bank notes, to increase security.
There are also no fees for card payments, which may be small, but over time can add up.
Aside from this, the British public are still very keen on cash with eight out ten Brits relying on change to make everyday payments, and small businesses feel the benefit of that.
There are numerous reasons why British shoppers opt for cash over card. Some find it easier to manage their budget when using cash, as the ‘tap and go’ psychology of contactless payments can lead to frivolous spending. Also, for those that don’t like the jingle jangle of coins in their pocket, the more coins you spend, the less you have on you!
British coinage features an array of different designs and more are added every year. When paying with cash, shoppers also have the opportunity to look out for different designs. One of the most sought after at this time is the 50p coin featuring a beautiful Kew Garden design.
So this Small Business Saturday, why not hit your local high street and spend your cash instead of tapping your card. You never know, you might even find one of your favourite designs in your change. Don’t forget to share any finds with us on our social media .
The Regency Café is a great example of a business relying on cash. The Regency Café is an iconic, art deco style cafe in Regency Street, London. It first opened in 1946, and has been used as a filming location on several occasions such as Layer Cake (2004) and Brighton Rock (2010). In 2013, it was voted as the fifth-best restaurant in London, by users of Yelp. As a traditional establishment, The Regency Café is cash only and is dependent on coins and change.