New research by Small Business Britain and BT Skills for Tomorrow shows early signs of small business resilience, but over half still expect at least a 50 per cent fall in profits.
A third (36 per cent) of the UK’s small businesses have pivoted their businesses online, and have introduced new products or services (33 per cent), according to new research from Small Business Britain and BT Skills For Tomorrow, which shows early signs of small businesses ability to adapt during the coronavirus crisis.
The research also reveals that over a quarter (27 per cent) of small businesses have secured new customers, while almost two fifths (19 per cent) have moved to a new delivery model, such as home delivery. This suggests that many small businesses are going the extra mile to adapt and innovate.
Despite these early signs of business resilience however, the new research continues to underline the unprecedented strain on the nation’s 5.8 million small businesses. Over half (56 per cent) stated they expect at least a 50 per cent fall in profits this year, as a result of the crisis, and 50 per cent said they lack business confidence. The research also revealed that 20 per cent of small businesses feel they need mental health support to help them through this difficult time.
The survey results do represent a slight improvement in the mood amongst small businesses since the beginning of the pandemic, as many adjust and adapt their operating models. Earlier in the crisis, a similar piece of research by Small Business Britain showed a starker picture, with 69 per cent of small businesses saying they expected profits to halve and 66 per cent reporting they lacked confidence. Now, almost a third (28 per cent) say they feel confident, while 8 per cent actually expect to see revenues rise.