A Survey result states that nearly two-thirds of entrepreneurs believe their small businesses might not survive in long run due to COVID and many jobs might slump.
A London business school has warned UK as an survey estimates 6m small businesses supporting 16.6m jobs are in a precarious position financially due to COVID.
According to the study from King’s Business school, two-third of entrepreneurs feel their business may not survive in long run due to the pressure of COVID and more than half feel they would run out of money within one year.
Rishi Sunak said last week that he would expand the COVID-related job support schemes than initially planned. Also, expand more money for the self-employed and grants for businesses affected due to lockdown.
More than 350 entrepreneurs were questioned in the study by King’s Business school (part of King’s College London), to evaluate the impact of COVID and lockdown on their businesses and personally. Two-third responded that the survival of their business in future was under threat due to sink in trade. The study suggests that 16.6m UK jobs at risk.
“While entrepreneurs were optimistic and could see possible long-term positive impacts on their businesses, it was also clear that many were in survival mode.” said by Prof Ute Stephan, who led the research with colleagues Dr Przemyslaw Zbierowski and Pierre-Jean Hanard.
She also said entrepreneurs were adaptable to nature, “but there are only so many things they can do to keep their businesses afloat. With many parts of the country facing stricter lockdown, we urge the government to help SMEs find ways to adapt and build on their potential to ‘build back better’ as the backbone of a more inclusive and greener post-Covid UK economy.”
Businesses led by women were adversely effected than those led by men, with 72% reporting lower trading volume, compared with 56% for male-owned concerns.
