Small firms urged to ask for support over virus fallout

● Campaign launched as figures show entrepreneurs hit hard by economy blow

By than three-quarters of small businesses in Scotland are expecting a fall in profits in excess of 50 per cent this year as the impact of Covid-19 continues to batter the economy.

The survey findings come as a new Uk-wide campaign is launched aimed at highlighting the financial help available to small businesses, as well as mental health services for entrepreneurs who are struggling to cope with the severe challenges they are facing.

The research from Small Business Britain, a campaign group which aims to champion smaller firms, and Sheffielduniversity’smanagement School highlights how Scottish businesses are feeling the pressure.

As well as the immediate impact on profits, almost four out of five say confidence in their future has been hit hard.

But despite the impact of Covid-19, more than half of firms have not yet sought advice or help in areas such as business resilience and financial planning.

Organisations from across government, charities including the Samaritans and private sector organisations such as BT have now launched a campaign called “The Big Support” to highlight the help available.

Tim Vorley, professor of entrepreneurship at Sheffield University Management School, said the research showed just how hard the crisis is hitting small businesses across the country.

“This is really concerning. The UK’S 5.8 million small businesses are a pretty resilient group, which years of recent uncertainty has shown.

“There is a lot of support out there for small businesses, everything from business schools to government help, so it’s vital that we have a collective effort to raise awareness of the ways they can get help and advice, to get through this crisis and focus on getting back to business once it abates.”

UK Business Secretary Alok Sharma said the challenge facmore ing businesses was unlike any they have dealt with before and one that will take an “enormous collective effort to overcome”.

“The UK government is doing everything it can to back small businesses with as many as 96,000 already in receipt of £1.2 billion in grants,” he pointed out.

He urged all small businesses to also make use of the Ukwide Coronavirus Business Interruption Loan Scheme – which no longer requires a personal guarantee below £250,000 – alongside other schemes.

As part of the campaign, BT is also highlighting its free “Skills for Tomorrow” programme which provides help including webinars to enable firms to take advantage of technology to navigate the crisis and build their business in the future.

Chris Sims, managing director of commercial and marketing at BT, said: “With home working and e-commerce big trends for business now our programme is critically important to give businesses the skills to help themselves find a way through.”