Research conducted by APA on the current situation for UK SME businesses
Survey on the Impact of the Coronavirus on Owner Managed Businesses
Roffe Swayne are members of the Association of Practising Accountants (APA) and were keen to support the above initiative to ascertain the business challenges during lockdown. We asked a sample of our small and medium sized business clients to participate in a national survey on the impact of the Coronavirus on owner managed businesses.
Some interesting insights into how businesses are navigating their way through the current challenging conditions have emerged.
These survey results were also featured in an article in The Financial Times on Monday 27 April.
How are small and medium sized businesses faring in the lockdown?
Here are a sample of questions and results:
1) How has your turnover been affected by the public health measures that have been introduced to help tackle the Coronavirus?
It seems London and South East businesses are particularly susceptible to economic changes, with 50% of those surveyed stating that their turnover was between 70 – 100% lower due to the lockdown. Compare this to nationally, where the proportion seeing this level of reduction was 33%.
2) How many weeks ‘cash in the bank’ do you currently have?
More comforting is 47% of London and South East businesses have more than three months cash available, compared to 41% nationally.
3) How confident are you that you will be able to meet your wage bill over the next 1 to 3 months?
Over 51% of London and South East businesses are ‘very confident’ they can meet their wage bill, with 63% using the Government’s Coronavirus Job Retention Scheme (CJRS) to furlough employees. Whilst nationally the confidence rate drops slightly to 45% with 59% using the CJRS. It was very clear that the CJRS is considered absolutely critical to business survival.
4) Have you applied for funding under the Coronavirus Business Interruption Loan Scheme (CBILS)?
Surprisingly, both regionally and nationally under 17% have applied for the CBILS and, less surprisingly, of those that had applied, most thought CBILS could work better, mostly citing delays and confusion over scheme rules. Due to the speed the scheme was introduced, there were always going to be teething problems to iron out and, in addition, the Government has recently announced the Coronavirus Bounce Back Loan scheme.
Supporting businesses during Coronavirus
We are working hard to support our clients, to assist businesses we have created a Coronavirus Hub where you can find details of all government support available.
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