"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"
The top reasons given for this outlook are mental preparation (36%), the changes they’ve made to their business to make it more resilient (32%), and the Government support in place (14%).
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%) increasing their online presence since March 2020 – with website improvements (67%), putting services online (66%) and social media advertising (64%) cited as the measures which have had the most positive impact. Half of business owners (50%) also reported investing in improving digital skills, either for themselves or their staff.
The research shows that small businesses are being rewarded for adding the ability to take online payments, with e-commerce transactions at SME merchants up 6% since last quarter, and up 16% year-on-year.
Looking ahead to next year, nearly three quarters (74%) of business owners are planning to invest back into their business. The most popular areas for investment are marketing (29%), and new equipment / technology (28%). SMEs are also embracing the shift to ‘working from home’ for the long-term, with over a fifth (22%) planning to invest in working from home or productivity tools.
Prior to the lockdown announcement for England on 31st October, almost two-thirds (63%) 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 at 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. "
Emma Jones, founder of small business network Enterprise Nation, commented: “SMEs have again and again proved their resourcefulness and flexibility in this crisis. They have been proactive in looking at ways to adapt their business for a Covid economy – with investment in online tools, and having staff working from home all crucial to their ability to ride out the latest round of pandemic disruptions. In light of all of the economic setbacks, SMEs are hopeful that 2021 could bring back a degree of normality – and we are hopeful that they will persevere.”
