The plight of small local businesses as they battle with our bleak economic climate has been one of the most contentious issues of the current recession. In Edinburgh, we have a persistent reminder of this quandary in the constantly metamorphosing face of South Clerk street.

This main road truly is a graphic model of the brutality of business survival. Its shop fronts are overhauled and interchanged with astonishing regularity, submitting to a constant re-shuffling of scarf shops, sandwich bars and a surprising profusion of hairdressers. Now, however, an interesting new business venture is gracing the scene; one which speaks strongly of Edinburgh’s cultural heritage and suggests there still could be enough dynamism to overcome the stresses and strains of our financial environment.

The New Victoria Project is a campaign to preserve and restore the former Odeon on South Clerk Street. Anyone who has lived in Edinburgh over the past decade will be familiar with this boarded-up edifice languishing on the central portion of the street. It has projected such a decrepit exterior for so long that most are surprised to hear of its rich history and architectural promise. In fact, it is a grade-B listed building with authentic Art Deco interior, which opened in 1930 as a glamorous cinema and was re-invented in the 1970s as a music venue. It has seen Michael Caine and Sean Connery walk down its red carpet, and bands such as The Clash, Roxy Music and Whitesnake play on its stage.

A dedicated team of campaigners are committed to harnessing the huge potential of this building and are determined to renovate it as a multi-functional arts venue. "We hope that upon opening, the New Victoria will be a flagship venue for the city of Edinburgh and the rest of Scotland", says the project's Operations Manager Sarah Colquhoun; "A fully accessible, flexible venue delivering outstanding service in a truly unique and unforgettable setting."

Plans involve renovating the numerous cinema auditoriums (these will be designed specifically with red carpet film premieres in mind), as well as being flexible enough to accommodate other events such as music, theatre and comedy. The delightful Art Deco interiors will be renovated to restore the full charm of their pastiche classical decor, and accommodate both a Cabaret bar and a high-class cocktail bar on the balcony. The retro entertainment of the original cinema would be alluded to with the foyer redesigned to include a cafe and a traditional ice cream parlour serving single scoops and knickerbocker glories.

The cultural benefits of such an endeavor need hardly be noted. It is hoped that the New Victoria would serve as a new venue for the Fringe Festival and Edinburgh International Film Festival, both central to Edinburgh’s reputation as a global hub of artistic enterprise. It would also be a huge attraction for students, with whom Newington is certainly inundated. Indeed, two members of the core campaigning team are Edinburgh University graduates and many of the ever-growing team of volunteers are alumni or current students of the University.

Renovating the cinema also has considerable social implications. Colquhoun notes that "it will re-generate an oft-neglected area of the city, create jobs and stimulate the local economy". Community support for the project so far has been nothing short of overwhelming: "We have received a massive number of emails pledging support and asking to be involved on a voluntary basis. We believe that developing this positivity within the community is essential in carrying the project forward". Even media personalities such as actor and singer Helen Row have voiced their support, spying a gap in the market for this particular sort of business. Row commented on STV that "there are no decent fringe venues in Edinburgh where a small theatre can put on a show without breaking the bank."

Unsurprisingly, the New Victoria Project is not the first attempt at renovation. However, previous plans have failed since they were considered unsuitable for community and cultural issues. For instance, Duddingston House Properties were refused permission to turn the cinema into a boutique hotel, as Historic Scotland opposed their plans to replace the traditional auditorium. Similarly, plans to turn the building into a nightclub and live music venue were unworkable due to limitations on late night licenses.

It seems that creating a carefully renovated arts centre is simply the only business plan which this historic building deserves - but it won't come cheaply. The current price for the building is a staggering £2.93 million. Despite the difficulty of securing investment, campaigners are "working as hard as is humanly possible to get it."

Of course, the current recession - especially last week’s announcement that the Arts Council budget will be slashed by a third - will make this significantly tougher. Even well-established businesses which rely on a largely self-funding model (such as the Filmhouse) still rely extremely heavily on grants and funding from bodies such as the City Council, Scottish Screen and Creative Scotland.

Still, economists have been swift to assert that despite creating a more hostile environment for business survival, financial slowdown by no means signals a dead end for newly-launched small businesses. With strength of purpose and determination, it is still possible to counteract the drawbacks of the financial crisis.

Indeed, Colquhoun says that the recession has likely contributed to increased enthusiasm on the part of volunteers: "Many organisations and individuals have called for people to be more innovative in their response to job losses, unemployment and poor market conditions. We have been truly amazed by the wealth of expertise available to us through volunteers, many of whom have extensive experience and qualifications in certain areas but have found their skills either not put to use or under-utilised.

She goes further; "much of what we have achieved to date has been possible through people donating their time and experience - which perhaps would not have been possible if jobs were more plentiful".

Colquhoun concludes: "Perhaps the New Victoria Project is emblematic of the strong pull that the building has, and of the generosity of people willing to step up and give their time to a cause they truly believe in, despite the difficulty of these times".

Either way, the plans for an exciting new arts centre in Edinburgh in spite of drastic arts council cuts serve as yet another reminder that the city's cultural endeavors are more dependant on individual passion, energy and imagination than on government pay cheques. Whether the New Victoria Project is able to survive against the odds remains to be seen, but what lies ahead certainly appears to be promising.