New research undertaken by the Federation of Small Businesses (FSB) indicates that the COVID-19 situation is dire for many small businesses – with up to 5% likely to go under if they do not get further financial help from the government.
Around 250,000 owners of small firms across the UK that the FSB spoke to for this study stated that they do not think that they will be able to keep their companies afloat past the end of the year if more monetary support is not forthcoming.
One out of every five firms that took part stated that they had been forced to lay off employees during the period from October to December 2020, with one out of every seven saying that lay-offs will be needed before April this year.
Overall, the research by the FSB showed levels of confidence among small firms were the second lowest they have been in the decade since it started producing its annual Small Business Index.
Speaking in the wake of its publication, the FSB chairman Mike Cherry stated that, while there had been important financial help provided to many smaller firms by the government, there were plenty within this community that had been denied any assistance at all. He added that these included those new to self-employment, company directors and people with no business premises.
One option for struggling companies to consider is to speak to an affordable accountant for small business from South Yorkshire or whichever region they are located in.