Small businesses worry they won’t bounce back from coronavirus
Small business owners are concerned they will not be able to bounce back from the coronavirus pandemic, even as the economy starts to reopen.
A survey commissioned by Visa found that 56 per cent of small business owners are worried about long lasting damage to their firms as coronavirus ravages the economy.
These worries are shared by the majority of consumers too, with 70 per cent of those surveyed saying they were concerned about small firms reopening.
Despite their concerns, customers are cautious about returning to bricks and mortar stores with just 54 per cent returning if social distancing measures are in place. A small number – 18 per cent – will avoid shops until a vaccine for the virus is developed.
Small firms have been adversely affected by the pandemic, which shuttered businesses nearly three months ago. Businesses in the hospitality industry have been particularly badly hit and industry bodies have warned that if the two metre social distancing rules are maintained, small firms will be unable to make a profit.
However, the survey shows that 39 per cent of small businesses have adapted their business model to keep trading during the nationwide lockdown. It has led to the emergence of the so-called “AKA businesses”, which have diversified their offerings during the pandemic. And it has been received by consumers, with 85 per cent of those who have noticed the pivot saying they would like to see the measures continue once the lockdown is over.
SMEs will also have to focus on bolstering their online presence as 61 per cent of consumers feel less comfortable shopping in store than before the pandemic. While balancing “bricks and clicks”, 31 per cent of small businesses do not have a digital storefront.
Jeni Mundy, managing director of UK and Ireland at Visa, said: “Even in the face of extraordinary challenges, British businesses are gearing up for recovery by finding new ways to serve their consumers.”
“However, we know that many lack the time and resource to rebuild at this critical time so Visa is enlisting the help of its partners to offer small firms the tools, advice and expertise so they can adapt their business ready for a new normal.”
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