The Impact of Covid on UK Businesses: The Numbers
Since the ease of the Lockdown commencing on the 19th July, businesses have been able to re-open their doors. Businesses are now back in, well…business!
Now that most of us are in the clear (for the moment), we thought we would look back at the Impact of Covid on small businesses.
We can all agree that when Covid hit, the economy also took a hit. The UK saw a 10% slump, the worst drop in over 300 years. The Bank of England even had to cut interest rates to 0.1% to help businesses and households stay afloat.
But this didn’t necessarily stop the closures. According to ‘The Guardian’ Great Britain’s high streets lost more than 17,500 chain store outlets in 2020, with an average daily closure of 48 shops. The 75% of small UK businesses that did manage to survive saw their revenue decrease as a direct result of the virus, as indicated by the survey conducted by the Goldman Sachs Group.
As stated by ‘Office for National Statistics’ the worst hit sectors were travel, leisure, and storage. Even now, in July 2021, only 81% of these businesses are back to trading.
45% of those affected by Covid were forced to change their business model and the way they operate to keep afloat. This could include delivering products straight to their client base, furloughing employees or introducing work from home.
Working from home was most popular amongst the information and communication sectors, with 81% of businesses adopting this new way of working.
Only 75% of businesses had access to the furlough scheme, with 8% of this number still on furlough this month. Unfortunately, as not everyone could work from home or be placed on, 44% of small businesses made their employees redundant. Meaning the UK had an unemployment rate of 4.34% in 2020.
Despite the issues seen throughout the UK, many new businesses emerged. This included Bacon Marketing. The pandemic gave our CEO, Philip Bacon, the opportunity to start his own marketing outsourcing company that could assist or even take over a marketing team if they are overstressed or undertrained. As of July 2021, we have a successful business model with several clients and ad-hoc clients across several industries from beauty, healthcare, bikes and IT.
With 75% of businesses now re-trading as of March 2021 and the strong relaxation of the rules, business owners need to prepare and respond to the sudden surge in sales. This is where we step in. Here at Bacon Marketing, we can pick up when you slack, even acting as an entire marketing team.
To see how we can help, head over to our ‘Service’ page in the menu or click the link here.