Small firms fear they have 8 weeks left to trade
WELSH microbusinesses are worried they have just eight weeks before they may have to cease trading
Retailers, hairdressers and builders estimate that, despite lockdown now being eased, they have an average of just two months left before they will be forced to stop trading.
Research by Smart Energy GB, which surveyed the owners of 38 Welsh microbusinesses, firms with fewer than 10 employees, reveals the devastating financial effects of the pandemic, with over 81% of those polled anxious about how they will keep their business afloat in the coming weeks and months.
The biggest concerns for struggling owners are a lack of customers, cashflow issues and that consumer confidence won’t return quickly enough.
While many Welsh microbusinesses have now started trading again, over half (55%) of respondents admitted they had already considered permanently closing their doors because of the pandemic’s impact.
Just over a quarter of small businesses say they haven’t paid themselves in order to cope with the crisis, with the same amount borrowing from personal savings to stay afloat.
Commenting on the current situation, Michelle Ovens, founder of Small Business Britain, said: “Covid-19 has been hugely challenging for microbusinesses across Great Britain.
“As lockdown eases and firms get back to business, many are weighing up their financial situation and focusing on how to recover and move on.
“Now is therefore a good time to evaluate your business expenditure and identify new ways to save money.
“Everything from negotiating deals with suppliers, through to reviewing business models and shopping around for deals should be on the table.
“Embracing new technologies such as smart meters, which help you to identify ways to reduce your energy consumption and therefore save money, is another particularly valuable thing to do at this time.”