Lockdown hits Small Business Profits, Orders and Jobs
In a report issued by the Federation of Small Business (FSB), many companies confirmed they have seen falls in orders, profits and jobs.
The report found;
- 23% have cut jobs
- 75% have seen reduced profits
- 65% of exporters have seen reduced overseas orders
The FSB asks small business how confident they are about the future. Despite the economic impact of Covid so far, some areas report renewed confidence. There is wide variation across different business types and areas;
Three quarters (75.3%) of small businesses report falling confidence looking ahead to Q3 as a direct result of the coronavirus outbreak.
The least confident region was London, with an SBI score of -25.6. Small businesses in the North West saw a significant improvement in confidence. With an index reading of 45.0, it is the most optimistic region in Q2.
A return to positive sentiment was seen amongst small businesses in the construction, manufacturing, and accommodation and food services sectors. The majority of industries remain in net negative territory, however, with the arts, entertainment, and recreation sector recording the lowest SBI score (-66.3).
The report adds;
Looking forward, the outlook for the labour market continues to be negative and, as the furlough scheme unwinds later in the year, a further spike in redundancies is expected. This could well contribute towards a protracted recovery, with the increased threat of unemployment serving to stifle economic activity amongst consumers once more.
Want to learn more?
You can read the full report from the FSB here.
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