Cost Of The Small Business Financial Problem During The Coronavirus Pandemic

The global Covid 19 pandemic has caused so much hurt. People have passed away, others have had to isolate from loved ones, people have lost their businesses. It is difficult to not be in control of things when you are a business owner. Due to the fact that we rely on keeping in control in order to keep our businesses afloat. Many people have lost a lot. But what is 'a lot'? Let's look at the actual cost of the financial problem during pandemic.

The Biggest Losses

If we look at new research from Simply Business, we can see that small businesses in London, East Angelia and the North West have been hit the hardest. The average financial costs in these regions range from almost £22k in the North West, to over £23.5k in London. In East Angelia, the pandemic has cost small businesses, on average, over £25,000!
The survey was filled in by more than 1000 small business owners all over the United Kingdom. The data gives us a national average of over £15k in losses for small businesses. With total losses expected to reached over £22k. Small businesses have been and continue to struggle.

Help, Support, Grants & Schemes

Of course, to assist people with this financial problem during pandemic times, there has been a range of help, support, grants and schemes. You will have heard of some such as furlough and bounce back loans. We've talked about some on the blog before and there has been news of the fifth and final SEISS grant released last week. Some though, have slipped through the gaps and haven't been supported at all. This makes the losses even harder to absorb. Harder to take.

Some Businesses Have Thrived

On the flip side of things, there have been news stories of businesses thriving during the pandemic. People saw gaps in the market and set up businesses selling home gym equipment, for example. Where there is demand, people will find a way to supply and make a profit. Some businesses adapted to survive but those who didn't adapt, failed.
Of course, none of that helps those small businesses who have faced the financial problem during pandemic. Those who have suffered huge losses because of something completely out of their control. If you are in that situation, be sure you access the grants that are available to you and think of ways to change your current business to succeed.
If you need a bookkeeper during any of this, please do get in touch.