Yorkshire businesses have good reason to stay positive
How have SMEs really coped through the pandemic? We’ve all seen headline reports on their plight, but how are business owners feeling? What does the future look like - is there cause for optimism as we emerge from the crisis? And what does that mean for SMEs in Yorkshire?
These are all things that Virgin Money sought to understand as part of its recent research into the impact of the virus outbreak and lockdown.
Via a UK-wide survey of over 4,000 people and a series of focus groups, the group, which includes Yorkshire Bank, has built a comprehensive picture of how people’s relationship with their finances changed through the crisis, with a big focus on how SMEs have been impacted.
Some of the findings were as expected, but others more surprising. What comes through fairly consistently, however, is a sense of hope about the future. Here, we take a look at what we can take away from the study.
One finding that stands out and is a positive one for SMEs is an increased propensity to ‘shop local’ and support small businesses among consumers. 96% of the public agreed it is important to support local businesses during the outbreak and 37% reported an increase in their spend on grocery shopping at local or independent shops.
This is great news for Yorkshire businesses opening up post the lockdown. In focus groups, people reported they now have a much more mindful approach in terms of where they spend money. One person surveyed said: “I will think about what I buy...local businesses seem to be doing more to help people and I want to support them.”
The research gathered views from 250 SME owners on how they feel they have been personally hit by the crisis and their outlook. As expected, the research shows that SMEs have been hard hit by the pandemic, relative to the rest of the UK population. 54% of SME owners report that their income has decreased and 42% surveyed have taken at least one form of financial assistance offered in response to coronavirus. 60% of SME owners, in addition, say that they are taking a more cautious approach than usual when managing their money.
However, interestingly, SME owners remain happy, and appear optimistic about the future. 52% of SME owners surveyed rated their happiness level between 7 to10, compared to 43% across the rest of the general public. Also, in focus groups, SME owners expressed resilience and a belief that highs and lows come with the territory. One local SME said: “The wider impact on the economy will impact us, but we can change stock to suit budgets. I am going to stay positive. We have kept our shop for 20 years. It goes up and down, but this will change how shops operate.”
Overall, SME owners seem to remain in good spirits, despite the challenges they have faced over the last few months.
Communities across the UK have really pulled together during the pandemic and with many consumers pledging to support local businesses, this will likely have a big impact. We are now emerging from the crisis and while there are still challenges to navigate, we believe there is strong cause to be hopeful.