Further lockdowns are the number one worry for the owners and directors of UK SMEs but 53% are cautiously optimistic about the year ahead and 22% are very optimistic, according to a survey by Purbeck Personal Guarantee Insurance.
The survey spoke to 1,000 SME owners and directors on how they were feeling about their business at this moment in time after the covid-19 pandemic with 49% of SME owners and directors hope to keep their business on an even keel this year.
The biggest take from the pandemic for SMEs was that 34% felt that they had strengthened employee relationships, 31% felt that their business and customer relationships had improved, 29% said the pandemic had made their businesses leaner and more agile than before, and 12% said that it had enabled them to find new income streams.
Todd Davison, MD of Purbeck Personal Guarantee Insurance said: ‘We are not out of the woods yet but with some certainty over the lifting of restrictions on 19th July, SMEs are generally in a better position to plan their finances based on what they hope to achieve in 2021, over a third want to grow their businesses this year. The ability to plan and focus on the future after eighteen months of massive uncertainty is reflected in the reported levels of optimism amongst SME business leaders.
‘The ONS Business Insights data shows that 88% of businesses are now trading, the highest percentage since comparable estimates began in June 2020, however for 30% this is below their usual capacity.’
On 1 July 2021, the 100% businesses rates relief offered to businesses during the pandemic was reduced to 66%. This is capped at £2m per business for properties that had to close on 5 January 2021, when the UK entered its most recent major lockdown and the relief for the business rates will continue until April 2022.
Many argued that the UK government had to continue to support businesses until the UK could reopen fully and without capacity.
Davidson concludes: ‘While we back the calls for government help for small businesses to cover the 18-day window between financial support winding down and the lifting of restrictions, it is quite likely that these businesses will need to find ways to stand on their own two feet during this period. Maintaining a dialogue with lenders, creditors, suppliers and customers will remain vital.’
The survey also found that worries about Brexit were still worrying some SME owners and directors which supports the latest insight data from the Office of National Statistics which found that paperwork remains a top challenge faced by businesses for importing and exporting.
The Office of National Statistics also found that 27% said that Brexit was their top concern, while 18% ranked late payment by customers as their most pressing worry.
