'Cost of doing business crisis' small firms affected most

A higher proportion of small businesses are not fully trading, the UK Government is being asked to provide more support.

A new analysis by the Office for National Statistics (ONS) has found that around one in six small firms are not fully trading. This has led to the Federation of Small Businesses (FSB) asking the Government for more support for smaller companies struggling with the current cost crisis.

When surveyed between 19th April and 1st May, the number of firms not fully trading were:

• 16% of micro-businesses (under 10 employees)
• 6% of businesses with 10 or more employees
• 3% of larger firms with over 250 employees

The largest proportion of businesses partially trading were micro-businesses, at nearly one in ten, and 2% said they had stopped trading altogether.

The figures from the research suggest that the smallest companies were struggling much more than larger businesses - even before cost rises.

The chairman of the FSB, Martin McTague, said that businesses are struggling with rising fuel prices and supply chain disruption, as well as rising bills and higher mortgage prices in their personal lives. Micro-businesses are not eligible for the relief offered to consumers, and don't benefit from the leverage that large businesses can bring to bear.

"Their fight to bounce back from Covid is that much greater than for a lot of big corporates."

The FSB is calling on the government to provide more support for small businesses by extending measures to ease covid loan repayments.

Article by Nottingham Post