Virus halts 60% of businesses
Survey reveals devastating impact
More than 60 per cent of rural businesses in Perthshire have halted business activity completely due to the coronavirus pandemic.
And a survey carried out by rural enterprise support organisation GrowBiz shows just eight per cent are operating as normal.
GrowBiz CEO Jackie Brierton MBE has said coronavirus has made it necessary to innovate and be exceptionally resilient in the face of possible disaster.
GrowBiz conducted the survey in April where almost 250 rural businesses responded.
The group had previously voiced concerns over the disproportionate impact which the COVID-19 outbreak will have on Scotland’s rural businesses.
With nearly 25 per cent of adults in rural Scotland being self-employed (more than twice the rate of urban areas) and challenges such as inconsistent broadband coverage, poor transport links and greater distances to food supplies and health services, rural businesses and their communities are under severe pressure.
Ms Brierton said: “The spread of COVID-19 presents enormous challenges for businesses across Scotland and especially for small and micro-businesses in rural Scotland.
“We know how much energy and commitment these start-up businesses in rural areas require and what awful timing it has been for this pandemic to strike them. So many were emerging from a long lean winter, needing a good summer’s trade.
“But the businesses we deal with are proving to be resilient and innovative and good ideas on how to adapt to a new reality are emerging. But this does not negate the serious problem of cash flow.
“Our survey shows the devastating and potentially irreparable damage that has been done over the past few weeks of the pandemic and the urgent need for a strategic approach to supporting rural businesses and the communities which rely on them so heavily.”
Fewer than eight per cent of respondents to the survey were willing to apply for business loans in the current uncertain circumstances.
Around a third are hoping to access HMRC’s Self-Employment Income Support Scheme, reflecting the large percentage of self-employed workers in rural areas.
GrowBiz is providing telephone and online peer support sessions for any rural businesses seeking support.
For further information on how to access support from GrowBiz or to speak with a member of the team, visit www.growbiz.co.uk or email connect@ growbiz.co.uk