Friday, February 3, 2023

‘Spend Christmas funds with small firms to keep them afloat’, shoppers are urged

Almost three in five small business owners in the UK expect to make less money this Christmas than they did last – when Covid-19 restrictions still dominated lives.

The survey of over 600 small business owners, commissioned by business insurance provider Simply Business, revealed just how fundamental the festive period is for SMEs – with one in five making over 20% of their annual revenue during this period alone.

And one in 10 owners say they’re at risk of shutting permanently. Meanwhile, one six say they’d need to consider taking up additional employment.

Despite the UK not having any Covid-19 restrictions in place this Christmas, the majority of owners still expect to take less, as consumers around the UK feel the impact of a cost of living crisis. One in three predict losses of up to £1,000, and a tenth believe their profits will shrink by up to £5,000.

According to the survey, the reliance on the festive period is forcing many to work throughout the holidays despite a fifth rating their mental health as ‘bad’ or ‘very bad’.

More than one in three are set to not take any real break in December – with one in 10  working the whole of the festive period, and 23% needing to check emails, take calls, and process orders throughout.

Ahead of Christmas, Simply Business is urging people to spend their money with small businesses.

Alan Thomas, UK CEO at Simply Business, said: “Amidst a cost of living crisis, when so many are still in recovery mode from the £126.6 billion impact of the pandemic, this Christmas is – quite simply – a lifeline for small businesses.

“The self-employed are feeling the pressure from the current economic climate more than most, so it’s worrying that the majority of owners expect to take less money than previous Decembers. They are inevitably feeling the squeeze as they struggle to pass on rising costs to their customers. What’s more, the cost of living crisis is having a clear impact on consumer purchasing behaviour, which is another blow to the pockets of small business owners.

“Small businesses account for 99% of all British businesses, contributing trillions of pounds a year in turnover. The recovery of our economy and communities is directly linked to their success. We must support small businesses all year round, and there’s no better time to start than during this incredibly important festive period.”


A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemichaving a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.

Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.