COVID impact on small business owners

A new report published by Simply Business has quantified the impact of the pandemic on both the finances and wellbeing of the small business community.

Data from ‘The impact of Covid-19 on UK small business’ report suggests that the total anticipated cost of the pandemic for small businesses will be around £126.6bn. This is nearly double the amount initially estimated in the previous year’s report. The data also highlighted significant regional variations, with London, Scotland and the North East among the hardest hit areas.

Research conducted for the report also found that the small business community felt that government support lacked clarity, with many firms feeling excluded. For instance, 81% of small businesses said they had not received enough support from the government, while 24% felt there should have been greater communication and transparency about COVID’s impact on small businesses and the self-employed.

The report also highlighted the toll on small business owners’ mental health and wellbeing. Overall, 82% said the pandemic is having a negative impact on their mental health, while 19% described their current mental wellbeing as ‘bad’. Furthermore, 47% said they were worried about how their mental health will hold up throughout 2021.