Business on Sark

The scenery on Sark is stunning

But it does have its very own Chamber of Commerce - reputedly the smallest in the UK.

Working Lunch was invited to see how business is done in such a tiny place.

Sark boasts some of the most picturesque coastlines anywhere in the world, and to most visitors feels like a step back in time.

Horse-drawn carriage

Motor cars are banned and so the only motorised way of getting about is by tractor; if you don't fancy walking, bikes and horse-drawn carriage are the alternatives.

Motor cars are banned

There are just 18 businesses on the island ranging from pubs and hotels through to dairy farmers, ice cream sellers and fishermen.

One of the most successful is Caragh Chocolates, a traditional chocolate-making firm.

"It's not so much hard, just challenging," says owner and founder Caragh Coulridge.

Ingredients imported

"We've got some great products here, and obviously we have to import some of our ingredients from abroad by boat, but some of the dairy products we need we can get from farmers on the island.

"There are less people around in winter but word of mouth and advertising keeps us busy."

It is a beautiful place to live. Caragh Coulridge

"It's a popular product and people want it all year round," she says.

One problem can be finding the labour.

"We employ people all year round and train people up, but yes, it is a worry and you have to look after your staff well to keep them," explains Caragh.

"It is a beautiful place to live and there are very little commuting problems.

"The only problem is when its bad weather and people can't get to the island."

Tourists are vital for some businesses

"Business is going well at the moment," says Mary Nightingale, who sells ice creams on Sark.

"But we've lost our ferry service from Jersey so that means visitor numbers are down."

Basil Adams is a crab and lobster fisherman on the island.

Fewer tourists

"This year's been exceptionally bad because there hasn't been much demand for the crabs," he says.

"Other years have been good but this one's been tough; there's fewer tourists so demand is down, and that's a pity."

John Donnelly: "It can be tough"

"It it can be very tough," says John Donnelly, president of the Sark Chamber.

"We've got some very big issues regarding tourism, we've got difficulties operating boats into our small harbours.

"Sometimes it feels like you'd rather be doing business elsewhere but it's very rewarding on Sark and in the winter when things slow up we all get together and plan what we're doing to do in the summer for promoting the island."

Sark's isolated location means that the companies here are never going to have it easy - the need to preserve the island's beauty rightly takes priority over doing business.

And it seems that none of the firms based here would have it any other way.

Student Guide

When it comes to location, the islanders of Sark have got it made.

There are beautiful seascapes, caves and a sense of yesteryear throughout the island.

But making a living is another matter. Tourism keeps the island running for some of the year so there are hotels and guest houses.

Businesses which serve the tourist industry also work. Trips around the caves and journeys in horse-drawn carriages keep people busy - but only for a short period each year.

With only 550 permanent residents it's hard to run the usual businesses that you find in a High Street on the mainland.

People who want to live on Sark have to find ways of running a business from this remote location.

Just think...

What advantages does Sark have as a tourist location?

Have a look at Sark's tourist information website to find out what type of businesses succeed on the island.

Which businesses do you think will work all the year round?

What disadvantages are there to depending on tourism?

What does business need?

All businesses need customers. Often the customers come to the business. Sometimes the businesses goes to the customer. Sometimes they never meet at all.

A business which depends on customers coming in must be in the right place.

Caragh Chocolates sell all over Europe

Fashion shops tend to cluster together in the High Street. Specialist shops for anglers or plumbers are often in less expensive locations in side streets because customers are prepared to travel or are more interested in the price of the products.

On Sark the crab and lobster fishermen have been suffering because tourist numbers are down and sales depends on customers coming to the island.

Caragh Chocolates sells its delicious products to visitors who come to the island but also has mail order sales through the website.

Have a look at the website to find out how the business works.

Just think...

Think of three businesses which:

• depend on customers coming to them
• go to their customers
• never meet their customers.

What effect does this have on location?

How has the development of the internet helped business? Why can it be difficult to get going on the basis of internet sales?

The right people

Any business which employs people depends on having the right people in the right place.

New staff often need training but they generally need some skills to start with.

Businesses which need specific skills often develop in areas where there are clusters of skilled people.

Some businesses, like call centres, set up in places where there is high unemployment so there is a ready pool of people and wages tend to be lower than elsewhere in the country.

Caragh Chocolates employs local people and trains them to make chocolates. It is important to look after the staff because supply is limited.

If the business becomes known as a bad employer, it would be hard to find workers.

Much of the work is seasonal because tourists come in the summer so hotels, for example, need to employ people for a limited period only.

Just think...

What difficulties does a business on Sark have when it comes to employing people?

What sort of staff are employed by a business that you know? Does this affect where it is located?

What makes it

• easy
• difficult
  for a business to recruit staff?

Resources

Some businesses depend on specialist raw materials and are located where they are available.

The fishermen on Sark could not be based in Birmingham!

Oil refineries tend to be based near ports so they can process the oil when it comes into the country.

Many businesses are now footloose because the resources they use are available anywhere.

As the proportion of service industries grows, this becomes increasingly true. Customers are more important for them than the resources they use, which are available everywhere.

Caragh Chocolates uses a range of raw materials. Some of them are imported from the mainland and the dairy products come from local farmers.

Just think...

Make a list of businesses which:

• are tied to one location
• can be located anywhere.

If you were setting up a sandwich shop, what factors would you have to consider when deciding on its location?