A new study conducted by the Federation of Small Businesses (FSB) predicts that up to 250,000 small businesses will shut their doors permanently this year if no further coronavirus financial support is forthcoming.
A survey conducted by the FSB found that 5% of respondents fear having to close their business before the end of 2021, unless the UK Government is able to deliver further financial aid.
Almost 12 months after the initial outbreak, the country and its economy is continuing to suffer from the effects of the Covid-19 pandemic.
Firms across Wakefield, Halifax and Huddersfield have faced challenging times due to repeated national lockdowns and strict orders to cease trading.
And while operators in the retail sector, and others, have been able to do business online, for many there has been little option other than to down tools completely, costing the business significant income.
The stats show that one in five local businesses made redundancies during the final three months of last year and a further one in seven are expected to take similar action before April.
The report also showed that confidence among business owners it at its second lowest ebb in its ten-year history, with recent confusion surrounding Brexit further contributing to the unease being felt by proprietors.
FSB Chairman Mike Cherry said: “Although small business has welcomed the Covid help lifelines thrown to the retail, hospitality and leisure sectors, the Government must realise that the small community is wider than that.
“Nothing has been done for company directors, the newly self-employed and those who do not use commercial premises.”
He added: “The development of business support measures has not kept pace with intensifying restrictions.
“As a result, we risk losing hundreds of thousands of great, ultimately viable small businesses this year, at huge cost to local communities and individual livelihoods.
“A record number say they plan to close over the next 12 months, and they were saying that even before news of the latest lockdown came through.”
Cooper Accounting understands that Managing cash-flow can be a breaker for many businesses, especially during such uncertain times.
Founder Samantha Stokes said: “I can work with you to manage cash-flow, provide and advice, and get all of your outstanding invoices paid to you as fast as possible.
“I can create a plan to reduce the figure on the debtors list and help to plot a more positive path forward for your business.”
Get in touch with Samantha today for a free consultation.