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Fifth of Business Owners Uncertain About Re-opening After Pandemic

Posted 3 months ago

Fifth of Business Owners Uncertain About Re-opening After Pandemic
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Nearly one fifth of the UK’s small and medium sized enterprises have expressed uncertainty as to whether they will be able to survive the economic impacts of the coronavirus pandemic, new research has revealed. 

In a recent survey from OpenMoney, the retail and hospitality sectors have been worst hit, with almost one quarter of firms unsure if or when they will be able to reopen. 

Almost three quarters (73%) of small firms experienced a drop in their income during the lockdown, while almost two thirds (62%) said that they expect their income to be further reduced over the next year. 

According to Rob Marshall, managing director of WorkLife: “We’ve all seen our high streets devastated during lockdown with shuttered shops, pubs and restaurants. The likelihood is that many won’t reopen.

“But for those that can reopen, the worst is far from over. Income has reduced, while the changes needed to operate under social distancing rules are likely to push up their costs even further. This is a massive strain on everybody working there.”

Across the UK, 35 percent of SMEs told WorkLife that they had been forced to shut down during the Covid-19 crisis.

Commenting on the data, CEO of Nextfin, Sacha Bright said: “As mentioned in my previous blogs, the government needs to be much more creative to pull the UK economy out of this crisis. 

“Unrestricted business grants and taxation, such as business rates being replaced with an online sales tax, to successful marketplaces levelling the playing field, and tax credits to encourage high net worth individuals to stay in the UK and invest in business, such as S/EIS, will be the key to getting our economy back on track.

“So far, we have seen some good initiatives, however, civil servants have been placing too many restrictions on the schemes, delaying their effectiveness. When the red tape has been removed, such as 100% guaranteed loans, we see an immediate result.

Author: Sacha Bright & Oliver Murphy

Disclaimer

To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed. Nextfin is not liable for any damages arising from the use of or inability to use this site or any material contained in it, or from any action taken as a result of using the site. 



Tagged: sme business coronavirus news alternative finance



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