Page 26 - Industrial Technology EXTRA - Brexit Briefing

BREXIT BRIEFING

Over half of small businesses

risk closing within 12 months

53% of smaller business owners in the UK admit they are at risk of closing in the next
year, and one in 12 say they are already on the brink and could close within weeks

A new study amongst smaller businesses in
the UK has found that 55% say trade is
suffering due to lockdown, with just 30% able
to operate as normal.

As a result, 53% of small business owners
admit they are at risk of closing in the next
year. Just 33% feel confident enough to say
‘there is no chance my business will fold in
the next 12 months’. The research found that
many are already on the brink, with 1 in 12
smaller businesses saying they ‘will close’ in
a matter of weeks.

Conversely, lockdown has led to a boost for
roughly one in six smaller businesses (16%)
that say they are doing better than before –
half of which saying they are doing much
better.

The data highlights that smaller businesses
have been disproportionately affected during
lockdown. Whilst 87% of medium sized
businesses in the UK have been able to trade
to some degree, just 73% of micro
businesses and 60% of sole traders have figures paint a very mixed picture for small up and down the UK and that the country is
been able to. The figures follow previous businesses in the UK – those that were able facing a recession. It is therefore more
research in November 2019, when a quarter to adapt are generally doing well. Smaller important than ever to support small
of small businesses in the UK said they businesses are often able to be more agile businesses - not only does money spent
would have to close in the next 12 months if when it comes to conforming to social directly help owners and their families, it
they did not have a good end to the year. distancing and other rules. contributes to the huge benefit small
businesses as a whole have on the UK
Claire Davenport, CEO of the company “But there is no doubt that lockdown has had economy - as well as offering a more vibrant
which conducted the research, said: “The a negative impact on many small businesses and diverse range of products.”

Four in ten small businesses believe it will

take at least five years for UK to recover

Four in ten (39%) small business owners recover by the end of 2021, while more than unequivocal message to the Government.
believe it will take at least five years for the a quarter (28%) said a full recovery will take The small businesses we polled are
UK economy to fully recover from the impact up to three years. 18% believe it will take up unanimous that a full economic recovery will
of lockdown and Covid-19. to five years for the economy to bounce take years not months. But it’s these very
back. But the biggest share of the vote (39%) same businesses that so many people
The #ForgottenLtd Campaign polled more went to those who believed it will be 2025 depend on for their jobs, big companies for
than 1,000 small business owners on the and beyond before the UK economy is back their supplies, and customers for their
state of the UK economy. They were asked a on its feet. products and services.
simple question: How long do you think it will
be before the UK economy fully recovers Gina Broadhurst, co-founder of the “We are all linked so if small businesses are
from the impact of lockdown and Covid-19? #ForgottenLtd Campaign, comments: “The in trouble, we are all in trouble. But it’s not
Only 15% believe the economy will fully results of this snap poll send out an too late to save them.”

26 WINTER 2021 – INDUSTRIAL TECHNOLOGY EXTRA