Businesses still in ‘survival mode’
Many owner-managed businesses coming out of the third lockdown are still struggling with the impact of covid-19 and an uncertain economic outlook, according to new research.
The research among 435 owner-managed businesses across the UK was carried out in April and May by the APA, a network of 17 business advisory firms that represent more than 14,000 of such firms.
APA chairman Martin Muirhead said: “What is clear from our research is that a significant minority of owner-managed businesses who have managed to pull through the last 12 months are still in survival mode with uncertain trading conditions being the biggest concern to a majority.
“Nonetheless there is also evidence to suggest that those businesses that have managed to weather the impact of covid-19 are now more resilient and that existing and proposed Government support measures have generally been well received.
“Over the coming months it is vital that Government maintains a flexible and targeted approach to business support focusing resource on those sectors where there is the greatest need. Owner-managed businesses form the backbone of the UK economy and need continued, targeted support as we emerge from this third lockdown.”
In the study, 11% reported that it was likely they would have to make redundancies in the next 3-6 months, putting a potential 1.85 million jobs at risk across the UK.