According to research, the average UK small and medium-sized enterprise (SME) has suffered a 30 per cent loss in business income per month.
Around one in five SMEs have been hit with a 70 per cent, or more, loss to their business’ income, despite being an improvement from the 34 per cent loss April saw.
Due to the ongoing pandemic, nearly half of these SMEs have altered their business objectives as 38 per cent predict another fall in revenue, 32 per cent suspect another restrictive lockdown and 30 per cent worry for a continual economic downfall.
Although there are measures in place to protect the UK economy, the coronavirus pandemic proceeds to challenge SMEs.
There is ambiguity surrounding the current condition, let alone the future, but despite this, SMEs are continually adapting, innovating and trialling to get back on track, which is encouraging.
This research also found that only eight per cent of SMEs have increased their business income during these challenging times. Whereas other SMEs have tried different strategies, such as:
- 69 per cent have looked into ways to increase their business income.
- 67 per cent have proceeded to decrease costs to cover their losses (creating an average saving of 25 per cent of expenditure).
- 20 per cent have focused their time on enhanced communication with their customers or clients.
- 20 per cent have reduced discretionary spending and operational costs.
- 18 per cent have built a website promoting their services.
- 16 per cent used the furlough scheme to cut costs.
- 10 per cent have turned to a new market.
- Eight per cent applied for the Coronavirus Business Interruption Loan Scheme (CBILS).
- Seven per cent applied for the Bounce Back Loan Scheme (BBLS).
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