SMEs driving post covid recovery?
It has been argued that the UK’s SMEs are most likely to lead the post-Covid economic recovery, but, according to a report in CityAM this will depend on access to the right kind of finance.
It says that many SMEs are “having in arranging the right financial support to guide them through the next stage of the crisis” which it describes as a pivotal factor.
It says: “levels of debt for SMEs have jumped by 25% since the end of 2019 and there are risks to small businesses as they start to repay loans that kept them afloat in the crisis.”
The publication’s monthly survey reports that while the support offered by the Government during lockdowns was to be applauded, now, “Government support grants are rolling out very slowly and local authorities should be directing business owners towards grants for which they are eligible, rather than just turning down applications where the criteria have not been met.”
The UK has more than 6 million SMEs employing around 16.8 million people and generates 50% of UK turnover.