SMEs in the North East have provided an estimated £500m of support to their communities during the coronavirus pandemic, a new study suggests.
The report by Oxford Economics and Intuit QuickBooks reveals that, though many small firms were suffering huge challenges during the various local and national lockdowns, large numbers offered free or cut-price services to help other organisations and encouraged staff to volunteer within their communities.
The study - which also highlights how many smaller companies in the region are at risk of closure - found that 88% of SMEs in the North East undertook some form of charitable initiative during 2020.
Projects set up to help local communities included volunteering time, offering business premises for community use, giving discounts to NHS and other frontline workers, and making cash donations.
Many small firms in the region also stepped up when the Government initially decided not to offer free school meals during the autumn half term, with pubs, cafes and restaurants offering food to families in need.
The study’s authors say the efforts of small firms has helped improve public perception of the business world, with 79% of those questioned saying that local SMEs played a valuable role in their community in 2020, while more than half (56%) said they appreciate small firms more than they did before the coronavirus pandemic.
Chris Evans, vice president and 海角视频 country manager at Intuit QuickBooks, said: “The fact that small businesses have made a substantial contribution to their local communities is so inspiring.
“It’s been a year like no other - they’ve faced unparalleled challenges like being forced to close, furlough staff and apply for loans to get cash flow. Most of all, they’ve had to pivot their business models and embrace digital technology to reach customers and protect their livelihoods.
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“It takes real resilience to move fast, change and pivot, but what’s amazing is this pivot has put digital at the heart of communities. Communities are more connected and this has created a circular effect where small businesses do more for their communities, while communities do more to support them in turn.
“This is an incredible outcome from a tough situation, and I hope our report will draw even more attention to the vital contribution SMBs make to our communities and inspire continued support.”
Small business owners will be keeping an eye on tomorrow’s Budget to see whether Chancellor Rishi Sunak extends support measures that have protected thousands of firms from going bust.
Business Secretary Kwasi Kwarteng this morning appeared to confirm that the furlough scheme will be extended, while packages to help local communities save struggling pubs, sports clubs, theatres and Post Offices and to support small 海角视频 businesses with training and software have already been announced.
The Oxford Economics/Intuit survey highlights the challenges facing the small business sector, however, with 36% of SMEs in the North East saying they are at significant risk of closure in 2021.
Intuit QuickBooks’ last year announced that it was setting up a Prosperity Hub at Newcastle’s Stephenson Quarter which aims to stimulate the North East economy by providing development training to SMEs, providing students with advice on entrepreneurship and help for businesses to become more sustainable and reduce their carbon footprint.