Over half of SMEs say lockdown has a 'negative impact' on firms: Nucleus | Mortgage Strategy

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More than half of small business leaders say the UK’s third national lockdown is having a “negative impact” on their firms.

The data from specialist lender Nucleus Commercial Finance comes a day after Prime minister Boris Johnson outlined the government’s strategy that could see restrictions lifted by 21 June.

The survey reports that 54 per cent of SME leaders say “their feelings towards the current lockdown are having a negative impact on all aspects of the business”.

Just 8 per cent of leaders say they “feel supported”.

The survey also reported that 38 per cent of those who run small businesses felt stressed during the country’s third national lockdown, and a further 22 per cent say they either felt “lost” or were suffering from a “lack of direction”.

Just over a quarter, or 26 per cent, add “their negative state of mind is affecting the day-to-day running of the business”.

Yesterday, Boris Johnson laid out a four-step lockdown recovery plan that would see non-essential retail open from 12 April and opening any remaining closed sectors of the economy from 21 June, depending on positive health data.

Chancellor Rishi Sunak is expected to update pandemic business support measures in his 3 March Budget.

However, the Nucleus Commercial Finance survey found that 27 per cent of SME leaders are optimistic about the roll-out of Covid-19 vaccinations, which on Monday had given a first jab to over 17.1 million people.

Nucleus Commercial Finance chief executive Chirag Shah says: “We often first think about the financial impact lockdown is having on the SME nation, but we must also consider the emotional impact on business owners across the country.

“Businesses now more than ever need access to support, whether that be financial, mental health or practical, to help them through the tough times ahead.”

Shah adds: “While the picture is looking brighter with the mass rollout of the vaccine, it is never too late for business owners to engage with support groups.

“Not only do they provide business owners with access to a wealth of resources, but connect them with peers in their local area, allowing them to discuss the similar issues they are facing in today’s challenging environment.”

Data firm Opinium carried out the survey for Nucleus Commercial Finance, between 26 and 29 January, among 754 SME senior decision makers.


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