The ongoing surge of Covid-19 and frequent national lockdowns has a more significant effect on the UK’s small businesses. Over 250,000 small companies are on the brink of bankruptcy and collapse without any financial aid from the government. Although constant financial losses affect small companies from a year under the Pandemic restrictions, only a tiny percentage of business owners have decided to close down their operations for good. The rest are doing their best to stay afloat in the hope that the lockdown will finally ease.
Smaller businesses will generally have minimal external financing options available to them compared to their larger business counterparts. However, government loan schemes and support grants like the bounce back loan scheme have helped many companies keep afloat during the heavy periods of the lockdown. Additionally, more than a million loans provided by the UK government have been extended to elongate financial support until further lockdown ease.
Despite the government’s effort to support many small businesses in the country, which consists of £4.6 billion worth of grants and unemployment financial aid, this slight push will only delay the inevitable for many companies. Retail workers, self-employed workers and supply chains without a commercial premise are left out in the cold, and many independent businesses expect their profits to decrease further.
What does the world of a small business like post-lockdown?
While the nation is taking significant strides and making promising progress towards the new normal, it’s still too early to know what the future holds for many companies. The rapid process of mass vaccination, successful public events, and financial aid from the government paints a brighter future for the UK’s economic resurgence. How we come out of the Pandemic crisis and its lasting effect is anyone’s guess.
But the entrepreneurial fighting resolve brought many business owners to start their company in the first place. That sense of purpose is what’s going to see many through this stagnant period. With so many either resorting to business hibernation or applying for financial support to carry on with their trade, business owners shift their focus towards the future post-lockdown.
How can small businesses evolve to meet the new normal?
The correct approach for many businesses in such challenging times will depend on their particular resource and circumstance, but here are some valuable tips that can help many successfully emerge from the pandemic.
Do your research and apply for eligible financial support: Ensure thorough research on which financial help you might qualify for. There are many out there, from business grants, furlough schemes, council funding or a government-backed coronavirus loan. Many other options are open for a wide range of sectors, and checking the requirements and eligibility for each of them is the first step.
Keep a positive mindset: During such a challenging period, it’s essential to keep a positive headspace and prove to those around you that your resolve and passion for getting through this is stronger than ever. Your family, co-workers and employees will need a role model that can offer practical and emotional support. When crucial decisions are due, communicate your reasonings and do everything that you can to support those working for you.