Small Businesses And COVID-19: Has Your Area Been Impacted?

A survey that was recently done regarding small business owners in the UK, roughly 3700 businesses, as well as self-employed people, was featured in the SME Confidence Report. What we were able to discover is how many companies in the UK were affected as a result of the pandemic.

The highest costs related to this in the UK were found in the Northeast and in Scotland. Average lost earnings were represented in the UK was £11,779, it areas in the North West, and also in Scotland, were affected even more significantly.

Lost earnings, loan repayments, and work problems, related to average loss of income, came out to £15,483.65 in Scotland and for North East of England it was £15,039.52.

Loss of income by region

London – £17,074.36
The Midlands – £11,079.12
North East England – £15,039.52
South East England – £12,753.44
Wales – £11,804.82
North West England – £11,494.86
South West England – £10,989.60
Scotland – £15,483.65

It was only in the South West that we see a lower number of business closures, put down to the increase in online open takeaway, online leisure and more businesses moving online than elsewhere in the country.

Conversely, at the proverbial other end of the spectrum, it is in the South West that the pandemic has had the least amount of impact.

In regard to lost income, the average was £800 below what is normal, but it has also shown the lowest amount of closures, roughly 2% of respondents in the West Avenue permanently closed their businesses, and that is compared against the national average of 4%.

When you look at the South East, it is very similar, with only 3% of their businesses closing for good due to the pandemic.

Region % of businesses permanently closed

South West – 2%
Wales – 4%
North West – 6%
Scotland – 5%
North East – 4%
Midlands – 4%
South East – 3%
London – 7%

It is here, in the South West, that we have a lot of confidence regarding businesses going back to normal. In the South West, 79% of businesses, and 78% in the South East, plan to get things back to how they were.

Exactly how many businesses want to get things back to normal?

North East – 75 per cent
North West – 76 per cent
South West – 79 per cent
Midlands – 74 per cent
South East – 78 per cent
London – 70 per cent
Scotland – 76 per cent
Wales – 74 per cent

It is well-known that the central hub for all business growth is in London
The capital has been focused primarily on small business activity, which is why this pandemic has caused so many problems.

The highest average loss of income in the UK has been reported to come out of London, with as many as 7% of the businesses permanently shutting down.

The small business in London, conversely, have reported a very low rate of temporary closures coming in at 61% compared to the national average which is at 67%.

Therefore, it seems that London is positioned to come out of the pandemic much better than other parts of the country, with just 15% of small business owners that are stating they want to start a brand-new business once the coronavirus pandemic is over.

The Resiliency Of Small Businesses Remaining

Alan Thomas, the UK CEO that we were speaking with stated: “All of the UK has been affected by this virus, and there is a startling financial impact all across the country. It is the SMEs that are at the capital which will be eating the cost of about £17,000 each which is £5,000 higher than what is stated in the national average.

“COVID has had a definitive impact on small business owners, yet we are very inspired only look at how resilient these businesses are and the optimism that they still maintain.

“There are many businesses that want to restart or continue, and there are still others that want to start new businesses, showing the confidence that all of them have even during the many stages of this lockdown.”

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