Coronavirus: UK's SMEs showing 'incredible resilience'

The UK’s small business owners are showing “incredible resilience,” with nearly two thirds remaining confident about their business prospects despite the coronavirus crisis, according to a new survey.
One firm to have amended its strategy is clothing brand Meander Apparel - which is donating all profits to the Covid-19 response fund. Picture: contributed.One firm to have amended its strategy is clothing brand Meander Apparel - which is donating all profits to the Covid-19 response fund. Picture: contributed.
One firm to have amended its strategy is clothing brand Meander Apparel - which is donating all profits to the Covid-19 response fund. Picture: contributed.

Business switching service Bionic found that since the lockdown, more than three quarters of small to medium-sized enterprises (SMEs) have pivoted the way they operate to continue trading.

Bionic also noted that the government has announced a raft of measures to support businesses affected, including grants, business loans and the Coronavirus Job Retention Scheme, to help cover the cost of employee salaries kept on by companies.

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However, it added that there is concern among SMEs about the suitability and availability of these initiatives, with cash flow crunches and redundancies remaining likely for some.

The survey found that more than a quarter of small businesses have applied for access to financial assistance from the government – and SMEs have on average ten weeks of cash reserves to keep them solvent during the crisis.

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Bionic boss Paul Galligan said such firms face “unprecedented” challenges. “Everyone is doing their bit in the nation’s fight against coronavirus, and SMEs are responding resolutely, with innovation, creativity and passion, not only to keep their business going, but often to play a key part in wider community efforts.

“UK small businesses are demonstrating incredible resilience. Many have transformed their business model in a matter of weeks, by moving services online, launching a delivery service or creating a home office.”

The survey paints a brighter picture than a study published by the British Chambers of Commerce yesterday – which flagged the “heavy toll” the Covid-19 outbreak is taking. It found that a third of firms plan to furlough between 75 to 100 per cent of their workforce over the next week.

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