The toll of COVID-19 on small and medium-sized enterprises (SMEs) in the UK is set to exceed £126.6bn ($175.6bn) — nearly double the initial estimate of £69bn projected a year ago as the UK headed into lockdown for the first time.
According to a study by small business insurance provider Simply Business, on average, SMEs have lost £15,673 each so far in earnings due to the pandemic and subsequent lockdowns, up from the £11,779 small business owners initially estimated that COVID-19 would cost in May last year.
A year into the global pandemic, SMEs now fear they will lose a total of £22,461 each on average, suggesting there are still more losses to come. Almost one in 10 (8%) expect the pandemic to cost them over £50,000 in total.
What’s more, over 840,000 SMEs are not sure their business will ever return to pre-pandemic trading levels, bringing a huge blow to both the small business community and the UK economy.
With six million SMEs in the UK, accounting for over 99% of all businesses, 33% of employment and 21% of all economic turnover, the total cost of COVID-19 to UK SMEs – set to exceed £126.6bn – has the potential to send ripples through our economy and communities.
Overall, 81% of SMEs still say they haven’t had enough support from government – with 41% saying they don’t feel supported at all and 40% believing they’ve had some support but not enough.
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In terms of financial support, over 2.2 million SMEs (37%) still haven’t been able to access government schemes and grants, seen by many as a lifeline to help small businesses through the pandemic.
For those that have been able to access government support, a third (33%) have been able to receive the Self-Employed Income Support Scheme, a quarter (26%) have utilised the Bounce Back Loan Scheme, and one fifth (18%) have accessed the Local Restriction Support Grant.
So far, only one in 20 (5%) have been able to make use of the business rates holiday, and just 3% have been able to use the Coronavirus Business Interruption Loan Scheme. Despite the government offering a range of financial schemes to support small businesses, it’s clear that many haven’t been able to access the vital help needed for their recovery.
Looking ahead, roughly half (54%) of SMEs believe the government’s roadmap out of lockdown has given them some level of reassurance to start planning the future of their business – leaving 46% still uncertain in the coming months.
In recouping the money lost during the pandemic, the majority predict it will take anywhere from 18 months to two years (18%), or two…
Read More: COVID hit to UK small businesses set to exceed £126bn