A survey of over 1024 owner-managed businesses by the Association of Practising Accountants (of which Shipleys is a member), shows that the next 12 weeks will be critical to the survival of many.
Conducted over recent weeks across the UK, the study has revealed the real economy faces a critical challenge. It presents a stark picture of the challenges facing this vital economic sector. Key findings included:
- One third of respondents have seen turnover reduced by 70% or over since the lockdown
- Nearly half have seen turnover reduced by 50%
- 60% have less than 12 weeks cash in the bank
- 40% have less than 8 weeks cash in the bank
- A majority of businesses have used the Government’s job retention (furlough) scheme of whom 89% regard it as critical to their ability to keep staff on
- Only 16% of respondents have applied for funding under the Government Coronavirus Business Interruption Loan Scheme, of whom two-thirds said the scheme needed to work better.
See the research findings showing the National picture here
See the findings just relating to London and the South East region here
Background to the survey
The Association of Practising Accountants (APA) is a network of leading professional and business service firms providing support to over 14,000 business across the UK. The survey reached out to the businesses that drive the real economy: the SMEs; the local and long-established firms that provide jobs and vital services to their communities. The research comprises responses from 14 business sectors across the 9 UK regions.
Key lessons from the survey
The figures underpin just how challenging the current trading climate is for many of our clients. Owner managed businesses produce goods and services which help drive jobs and growth and it is vital that these businesses get the support they need over the coming months.
The research suggests that furloughing, as well the HMRC’s Time to Pay scheme (including deferring VAT and related taxes) have been critical for the survival of many businesses and their staff and are working well. However, there remain real challenges with the various Government backed loan schemes on offer with many of the APA's clients report confusion over assessment criteria or unacceptable delays from participating lenders
Along with other APA member firms, Shipleys will be taking these findings to Government and policy makers over the coming weeks to ensure that they are prioritising resource where it is most needed to ensure the sustainability of owner managed business across the UK.
Take part in the survey
The APA will also continue to monitor the challenges owner managed businesses are facing in the coming weeks. If you would like to take part in the survey, you can access it here.