1 in 5 small businesses will not survive without Christmas sales increase
Almost one in five of small business owners say their company won’t survive unless they have a successful festive trading period, a study by UK business insurance provider Simply Business has revealed.
For the majority of small business owners, 60%, the festive sales period would be a lifeline for their business, with 36% saying the festive period is a crucial window which makes up over over 20% of their annual revenue.
Without a Christmas sales boost owners expect their recovery to take 6-12 months or 12-24 months longer than planned, with 43% saying they are still struggling to recover from the financial toll of the COVID-19 pandemic, which cost small and medium sized businesses over £126.6bn in lost earnings.
More than a quarter of small business owners are concerned about their business's chances this December, stating they are 'not confident', with 1 in 10 expecting it to be worse than last year as they are struggling to attract enough customers and face supply chain issues.
More than half of small business owners also fear future lockdowns and tighter restrictions.
Alan Thomas, UK CEO at Simply Business, commented: "While much of the UK prepares for a period of well-earned festive cheer, the feeling among small business owners is likely to be rather more sombre this Christmas. Few have been harder hit in the last two years. They’ve faced the pandemic head-on, navigated supply shortages, and adapted to a new normal. They’ve shown resilience in abundance and done all they can to stay afloat.
"But without a bumper Christmas trading period, one in five small businesses will permanently close in 2022. It’s vital we support small businesses this Christmas."