UK small businesses ‘optimistic for the future’ despite coronavirus crisis
Most UK small and medium sized businesses (SMEs) are optimistic about the future despite the huge challenges created by the coronavirus pandemic, according to the latest research.
In total 60 per cent of UK SME owners are hopeful about the future of their business, making the UK the most optimistic in western Europe, alongside the Netherlands.
UK SMEs remained positive despite 43 per cent being forced to temporarily close due to lockdowns, and 58 per cent suffering declining sales, according to research by Facebook, the World Bank and the OECD.
Female-led firms outperformed their male-owned counterparts so far during the coronavirus crisis. Sixty-four per cent of male-led firms reported falling sales during the crisis compared to 52 per cent of female-run companies.
In the UK, female-owned firms were 11 per cent more optimistic than their male equivalents, the research found.
The research also found that UK small businesses are among the most digitally savvy in Europe, with more than half making more than a quarter of their sales online. Sixty-three per cent of female-run firms make a quarter of their sales online, compared to just 48 per cent of male-owned companies.
As a result, female-led small businesses were seven per cent more likely to close-up shop during lockdowns in comparison to their male counterparts, thanks in part to a larger proportion of women being responsible for household chores and childcare.
“It is essential we do not let this become the norm, and that the positive trajectory of gender equality that has been achieved over many years is not set back by this pandemic, especially for female entrepreneurs and small business owners who have carved out such an inspiring path to success,” Facebook’s EMEA vice president Nicola Mendelsohn told City A.M.
“As we continue to emerge from lockdown, and forge a road to recovery, we have to consider these differing impacts and make sure that they are addressed.
Facebook vice president of northern Europe Steve Hatch said: “From fitness classes, to restaurants, and beyond, small and medium sized businesses are the backbone of economies across the world — and it is vital we support them as they get back on their feet.
“These findings show a steely optimism among British business owners looking to bounce back better following Covid-19, despite how challenging the past few months have been.”