THE foot and mouth crisis has devastated the rural economy of Lancashire. farms throughout the Ribble Valley stand eerily empty after the culling of tens of thousands of animals in an attempt to arrest the spread of the disease.

The tourist industry on which so many villages increasingly depend has also been badly hit. Months of gloom news broadcasts have kept visitors away from the countryside in their millions.What is not so well chronicled is the impact the foot and mouth epidemic has had on mainstream businesses. Here we look at two small firms which are facing up to an uncertain future. A MARKET-LEADING Oswaldtwistle business is fighting back after a major blow disrupted orders and threatened the future of the company and more than 40 jobs.

Rosettes Direct is the UK's leading manufacturer and supplier of rosettes and show sundries. Every year, it provides thousands of rosettes, prize cards, ribbons and badges to agricultural shows and equestrian events around the country.

But only weeks after foot and mouth was first detected in February, show and event organisers started cancelling orders.

"Quite simply, large numbers of our regular customers were cancelling their shows and therefore didn't need rosettes," said managing director David Wallace, who had to introduce shorter working hours for the company's 45 employees.

"Luckily, as a result of staff agreeing to shorter working hours, we have not had to lay people off. However, a few who did leave because of the reduced hours and wages offered have not been replaced."

Faced with cancelled orders and reduced income, the company's bank referred David to Business Link for assistance under the Rural Business Recovery Programme, introduced to help local businesses suffering as a result of the foot and mouth epidemic.

Now, the company is working with a personal adviser on a recovery strategy.

Said David: "This, predominantly, means a complete re-look at the direction of our business including targeting new markets in the UK and increasing our export trade."

Rosettes Direct is also exploring further use of its website for e-marketing and e-commerce, encompassing integration of financial control with real time management accounts.

With foot and mouth still prevalent, David reckons normal business will not resume until at least the winter of 2002. "We would hope by then to be manufacturing rosettes for 2003 shows," he added.

The cancellation of agricultural shows around East Lancashire has also been a crushing blow fo many small firms.

Pennine Marquee Hire of Nelson has seen all of its show business cancelled because of foot and mouth restrictions.

"It is not just the marquees we hire to the show organisers, but also to traders who go to the shows to display and sell," said managing director Brian Foster.

Faced with major disruption to his operation, Brian contacted the Business Link helpline to find out about the Rural Business Recovery Programme.

"It has been an elightening experience," said Brian. "With the help of a personal business adviser, we have been reviewing our business plan, forecasting, job costing and general administrative procedures.

"We hope to become a more efficient business with information and costings to ensure we have a clear vision for the future."

Pennine Marquee Hire has turned a crisis situation into an opportunity. "I have had the time to sit back and take stock, working with the personal business adviser to review our whole operations," he said.

"We clearly need to seek a balance in our work so we are not so dependent on one sector such as agricultural shows.

"We already design and make some of our own marquees and we are being encouraged to look at other products we could make as additions to our range."

With around 50 marquees of different types and sizes, plus all the extras such as lining, lighting, flooring, tables and chairs, bars and even portable loos, Pennine is equipped to handle a wide range of assignments.