How will the lifting of restrictions affect SMEs?
On Monday the UK moved into the 4th and final stage of the UK’s Covid-19 Roadmap out of lockdown. Almost all restrictions have now been lifted and life for all is set to return to some semblance of pre-pandemic normality, but what does this really mean for companies across the country?
A poll from small business insurance provider, Simply Business, revealed the mixed feelings Freedom Day has created for SMEs and the self-employed. Over half (53%) of those polled believe social distancing restrictions are being lifted too soon and we risk another lockdown and almost 1 in 3 small business owners will retain social distancing and reduced capacity within their businesses.
The government decision to recommend the continued use of face masks in crowded indoor spaces represents a shift towards a more cautious reopening where personal responsibility has an increasingly large role to play. However, a third (29%) of SMEs think there should be clearer guidelines from the government to help small businesses reopen safely.
Despite some understandable concerns, many small businesses are poised to grow rapidly with the help of record investment over the past year. £8.8 billion of private equity capital was invested into small firms in 2020, with the figure for the first quarter of 2021 already reaching £4.5 billion. Therefore, reopening, record investment, consumers looking to spend, and the ambition of the UK’s entrepreneurial economy all points in the direction of growth.
With SMEs making up 99% of the private sector, they will prove central to the UK’s economic recovery and that is why at IW Capital, we are looking to support SMEs through this latest period of recovery from the pandemic.
From what we have seen from our portfolio companies and investors this year, the resilience and hard work that has been put into keeping businesses alive and keeping confident during such a difficult time, has all really paid off.
To find out more about IW Capital, or for more information on investment and non-executive opportunities, please speak to a member of the IW Capital team today on 020 7015 2250, or email email@example.com