1 / 4 of one million small companies will collapse with out additional assist from Covid

Closed: 5% of small businesses expect to close their doors before the end of 2021

According to the latest FSB study, more than 250,000 small businesses are set to close this year without further financial support from Covid.

Five percent of small businesses surveyed said they don't expect to struggle beyond 2021.

One in five small businesses laid off staff between October and December last year. One in seven expects this before April.

> See also: Small businesses are calling for a multi-billion dollar Covid-19 support package

The Federation of Small Businesses (FSB) quarterly Small Business Index (SBI) showed confidence in the second-lowest ebb in the report's 10-year history.

And the cohort that expects earnings to decline in the first quarter of this year hit an all-time high. Exporters had to grapple with EU bureaucracy when the UK-EU trade deal slipped.

Mike Cherry, chairman of the FSB, said the government needs to recognize that the small community is wider, even though small businesses have welcomed the Covid lifelines for the retail, hospitality and leisure sectors.

Nothing has been done for the company's directors, the newly self-employed, and those out of business, Cherry said.

> See also: Which small businesses can stay open in national lockdown?

Last week the FSB released a five-point plan to revitalize small businesses for life support from the pandemic.

She also wants the government to issue Brexit transitional vouchers, in line with Ireland and the Netherlands, to help businesses deal with new red tape due to the UK-EU trade deal.

Mr. Cherry added, “The evolution of business support policies has not kept pace with increasing restrictions. As a result, we risk the loss of hundreds of thousands of large, ultimately viable, small businesses this year, at a huge cost to local communities and individual livelihoods.

"A record number says they plan to close in the next 12 months and they said it was before news of the last lockdown got through."

further reading

National Small Business Lockdown – What Support Is Available?

Comments are closed.