Research conducted by Superscript, the business insurance challenger, reveals that over eight in 10 (85%) small business owners have made personal sacrifices for the sake of their business during the pandemic. Demonstrating just how far small businesses owners have had to go to keep their businesses afloat.
Financial and personal wellbeing
Almost half (48%) of small business owners have reduced their salary during the pandemic, while over a quarter (27%) stopped taking a salary entirely. Furthermore, 21% have taken out a personal loan to help their business and almost one in 10 (9%) have remortgaged their home.
The extent of sacrifices stretch far beyond the financial. 15% of small business owners say they’ve lost friendships, 8% broke off a relationship with a partner and over four in 10 (41%) have taken minimal time off during the pandemic in order to help their business. These admissions draw further attention to the mental wellbeing of small business owners, whose work and personal lives are very much intertwined.
Stifling growth and innovation
Given the still unknown longevity and impact of the pandemic, it’s unsurprising that seven in 10 (70%) small business owners say that their business plans for 2021 have been impacted. There is likely to be less hiring (39%), new products (33%), fundraising (27%) and international expansion (17%) from the UK SME community next year. Hinting towards significant and long term stifling of growth and innovation among many of the almost six million small businesses in the UK.
18 months of recovery
Demonstrating the sheer resilience and adaptability of UK SMEs, despite the challenging trading conditions two-thirds (66%) still expect to make a profit this year – with almost one in five (19%) predicting higher profits than they expected.
However, the 14% of small business owners that don’t expect to make a profit this year believe it will take, on average, 18 months for their business to return to profitability.
Cameron Shearer, Co-Founder and Chief Executive Officer at Superscript, comments: “Small businesses have been disproportionately hit by the pandemic. Owners of these businesses have been locked out of a lot of government support, but it’s humbling to hear the lengths they’ve gone to to keep their businesses – and livelihoods – alive.”
“With almost six million small businesses in the UK, they really are the lifeblood of our economy and we collectively can’t afford to see so many shut up shop. We must do what we can to support them through the pandemic and help them to thrive.”
Superscript provides business insurance specifically for small businesses. While traditional insurance providers are unable to adapt their policies fast enough to keep up with changing business needs, through its proprietary technology Superscript has built a reputation for reacting quickly with customisable, affordable and flexible monthly subscription-based cover that helps small businesses adapt to changing environments, to grow and scale.