Home Business NewsBusiness Two-thirds of SMEs in England feel more prepared for second lockdown

Two-thirds of SMEs in England feel more prepared for second lockdown

by LLB Editor
17th Nov 20 11:41 am

As we approach the end of an unpredictable and tough year for businesses, Barclaycard Payments’ latest SME Barometer has found that two-thirds (66 per cent) of small and medium-sized enterprises in England feel more prepared for the current national lockdown than they did for the first lockdown in March.

The top reasons given for this outlook are mental preparation (36 per cent), the changes they’ve made to their business to make it more resilient (32 per cent), and the Government support in place (14 per cent).

Across the UK, many SMEs are also turning to e-commerce as a way of recapturing some of the opportunities they’ve missed out on, with just under half (45 per cent) increasing their online presence since March 2020 – with website improvements (67 per cent), putting services online (66 per cent) and social media advertising (64 per cent) cited as the measures which have had the most positive impact. Half of business owners (50 per cent) also reported investing in improving digital skills, either for themselves or their staff.

Barclaycard Payments data show that small businesses are being rewarded for adding the ability to take online payments, with e-commerce transactions at SME merchants up 6 per cent since last quarter, and up 16 per cent year-on-year.

Looking ahead to next year, nearly three quarters (74 per cent) of business owners are planning to invest back into their business. The most popular areas for investment are marketing (29 per cent), and new equipment / technology (28 per cent). SMEs are also embracing the shift to ‘working from home’ for the long-term, with over a fifth (22 per cent) planning to invest in working from home or productivity tools.

Prior to the lockdown announcement for England on 31st October, almost two-thirds (63 per cent) of SMEs expected to return to 2019 levels of output by the end of 2021, although the latest restrictions may make this less achievable for some businesses.

Konrad Kelling, Head of Small Business, Barclaycard Payments, said: “The past year has been incredibly difficult for SMEs across all sectors, so it’s reassuring to see that many have been able to take advantage of the lessons learned during the first lockdown to adapt their business ensuring that they are able to continue to serve their customers.

“At Barclaycard, we want to support all of our clients and are working closely with those impacted by current circumstances by providing care packages to help them navigate the challenges they face.”

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