The COVID-19 pandemic has sent shockwaves through the economy, where UK’s 3.8m SMEs are being particularly badly affected, mainly because they cannot afford to keep large cash reserves. With 16m being employed by SMEs this goes well beyond being simply a “business problem” but is a problem for society as a whole.
There is little information available and a lack of clarity over the extent of this problem. However, a report has just been published by Beauhurst (an online database resource of UK’s high-growth companies) in an attempt to give more clarity by mapping the current impact across 28,500 high-growth SMEs. The main findings were:
- £18.9b of equity investment and £3.2b of public grant funding is already at moderate to critical risk
- 22% of jobs in the high-growth economy are immediately under threat
- Scale-up companies are especially vulnerable, with almost a quarter (22%) already at severe or critical risk and a further 43% at moderate risk
For full findings and recommendations for the government please click link.