A poll of small and mid-sized businesses (SMBs) by tech firm Sage has revealed widespread concerns about their future prospects as the country moves towards a gradual return to work.
The Newcastle company’s SMB Tracker found that more than half of companies expect a drop in sales even after their partial lifting of lockdown, and almost half are not confident of being able to return to work safely.
The tracker also revealed the dependence of many companies on the Government’s Job Retention Scheme (JRS), with 53% of business who have applied for the scheme furloughing more than 50% of their staff. Two-thirds of SMBs have either applied or intend to apply for the scheme, Sage found.
The survey also found widespread approval for the Government’s Bounce Back Loans scheme, though many are seeking small amounts, typically between £10,000 - £25,000.
Sage’s 海角视频 managing director Sabby Gill said: “Our research identifies that of the 50% of SMBs who applied for the JRS scheme, more than 50% of employees have been furloughed.
“Many thousands of businesses across the nation are facing serious and sustained financial challenges, and the assurances given by the Chancellor that they will not face a ‘cliff edge’ will be welcome news that can protect jobs in the coming weeks and months.
“Collectively, we must be led by what SMBs are telling us in these unprecedented times, which is overwhelmingly the need for the introduction of a flexible scheme, allowing for a gradual return of the workforce at reduced hours. The JRS scheme has proven to be a lifeline for a major part of our economy, and we cannot afford to let it in fail in this next phase of its roll-out.
“Strikingly, our research also highlights that there is an overwhelming lack of preparedness for SMBs facing the partial lifting of restrictions.
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“As the Government looks to move to the next stage in restarting the economy, we must help our entrepreneurs to rebuild. Our data shows that one in three expect to be doing less than half their usual level of trading by the end of May, even after the partial lifting of lockdown – with one in two seeing a 50% drop in sales compared to pre-Covi-19 levels.”
Elsewhere, the tracker found that more than a third of small and midsized businesses plan to look to exports to boost sales, while those planning to invest in technology are focusing on changes to business operations forced by the coronavirus lockdown, such as remote working.