Covid expected to cost small businesses £69bn

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Hospitality businesses have been among the many hardest hit by restrictions

The results of COVID-19 might cost businesses £69bn, in accordance to new figures from Simply Business.

That’s a median of £11,799 per enterprise, made up of misplaced work, earnings and complete income.

A worrying 67 per cent of businesses stated that they had to cease buying and selling in some unspecified time in the future up to now six months. There might be extra to observe, as 14 per cent stated that they’re doubtless to shut within the subsequent one to three months, 12 per cent believed they’ll be closed throughout the subsequent three to six months and 11 per cent inside six months to a yr.

Small businesses concern a second lockdown with one in 5 (17 per cent) saying that they wouldn’t survive.

A big proportion of respondents (48 per cent) believed that it’ll take no less than 12 months to get well the cash misplaced due to COVID-19. A big 12 per cent thought that it could take two to three years.

However, it’s not a completely gloomy image. Despite lockdown’s challenges, 85 per cent plan to stay self-employed and ten per cent plan to begin businesses. Others have adopted new applied sciences – 47 per cent are utilizing messaging apps, 33 per cent are utilizing extra social media, 36 per cent are taking contactless or on-line funds and 25 per cent have began on-line supply providers.

Many enterprise homeowners are trying past the virus, with 75 per cent felt that they might both proceed or restart their businesses after the state of affairs settles. Over 20 per cent say they’re ‘very positive’ about their enterprise post-COVID.

But small enterprise homeowners can’t survive on their very own as Alex Thomas, CEO of Simply Business, explains: “The government has a clear duty to protect public health throughout the pandemic, but it’s obvious that any decisions – whether that’s on fiscal policy, further lockdowns, or future packages of financial support – will also have a huge impact on the rate of recovery for small businesses, and ultimately, the UK economy.”

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What new Covid restrictions imply for small enterprise