One in five SMES worry Covid restrictions could return soon, reveals Recognise Bank
Confidence among Britain’s SMEs remains strong with almost eight out of ten (78%) saying they are expecting a boost in trade over the coming three months now that most Covid restrictions have been lifted.
A survey of 500 firms by Recognise Bank also found that a significant number of SMEs are concerned about the continued impact of coronavirus on their business, with one in five (19%) worried that Covid restrictions could be brought back in the coming three months.
This rose to more than a quarter (26%) of businesses in the leisure and entertainment sector.
Covid topped the list of concerns for SMEs. Recognise Bank found:
- 19% of all SMEs worry Covid restrictions could return over the next three months, rising to 26% of leisure and entertainment businesses;
- 17% of SMEs worry there could be another lockdown before the end of the year;
- 17% of SMEs are concerned about keeping their employees safe from Covid, rising to 26% of leisure and entertainment businesses;
- 15% of all SMEs are concerned about keeping their customers safe from Covid;
- 14% worry their employees won’t want to return from working at home;
- 14% worry they will be understaffed because too many employees will have been “pinged” and forced to isolate.
The impact of Covid remains a constant theme amongst SMEs. Recognise Bank found that 24% of firms plan to purchase more protective equipment for their staff over the next three months, while 18% plan to spend on protective measures for customers.
Top of the shopping list was new equipment and IT, selected by 24% of SMEs; new stock and equipment, cited by 21% of firms; and new products and services, chosen by 19% of SMEs.
Jason Oakley, CEO of Recognise Bank, said: “SMEs have weathered a tough and unpredictable 18 months and while their confidence continues to stay strong, the shadow of Covid remains a constant concern and a risk to their businesses.
“We cannot underestimate the importance of the role UK SMEs will play in getting our economy back on an even keel, so they need all the support they can get, whether it’s customers using their local businesses more, or increased support and guidance from the financial sector to provide them with the funding they require.”
Recognise Bank provides business lending to SMEs via a network of regional hubs. It will be launching personal and business savings later this year.