Can SME’s bounce the UK out of recession?
Recent surveys suggest a wave of job losses and insolvencies are expected this autumn. With the UK officially entering a recession for the first time in 11 years, will SMEs’ resilience be key to an economic recovery?
Looming economic downturn feared
According to the Chartered Institute of Personnel and Development (CIPD), 33% of UK companies fear they will be hit by redundancies. Analysts predict that the broad-based layoffs will impact IT, manufacturing, and construction sectors the most. And while the Government’s apprentice initiative brings promise to creating new opportunities and training, a quarter of a million over-50s workers could end up permanently out of work.
Early signs of recovery?
A vibrant SMEs sector is crucial for a healthy market economy, and the PMI index shows an increase in business activity across all UK regions. But, despite the strong UK entrepreneurial spirit and the government support, the majority of SMEs surveyed confirm they will run out of funding in just nine months.
Survival of the fittest
With local and global economic turmoils ahead and potential of the second wave of the virus, any business should be encouraged to test-stress their finances and to seek professional help earlier.
If your business is facing financial difficulties, and you would like to know your options, contact us for free impartial advice on 📞0800 118 2948.
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