4th January 2021
By Karan Rajesh
The COVID-19 pandemic has had a significant impact upon small businesses across the UK. From a recent report Goldman Sachs found that 62% of SME businesses continued throughout the period without disruptions, though 44% of these businesses have had to cut jobs as a result of the effects of the pandemic. The government has supported a majority of small businesses during this economic crisis. The report also suggests that 91% of businesses have had access to Covid related Government support.
SME Businesses are an important lifeline for the economy and account for around 50% of the total revenue generated by UK businesses. Around 80% of SMEs say their revenues are declining. The most negatively affected sectors as a result of the pandemic include logistics, construction, and agriculture. Up to 50% of SMEs in the UK are also able to obtain benefit from the usage of the government’s furlough scheme.
In addition, 6 million SME’S support around 16.6 million jobs and are in difficult financial constraints due to the direct impacts of the pandemic, as underlined from a study by Kings’ Business School more than 350 entrepreneurs were questioned at the height of the first coronavirus lockdown to evaluate the impact on their businesses and personal impacts of the virus. A further 61% reported that the future existence of their business was under threat due to a slump in trade and a potential of 16.6 million UK jobs being put at risk. Small businesses contribute 52% of the £2.2 trillion turnover generated within the private sector and employ 60% of private sector workers and have been impacted tremendously as a result of the economical implications and uncertainty of Covid-19.
This continued uncertainty surrounding government regulations and restrictions also poses a concern to SME businesses in the future and the impact that the pandemic is likely to have upon the economy and businesses still remains to be seen.