Originally written by Timothy Adler on Small Business
The number of small businesses in distress has tripled compared with the pre-pandemic average, according to figures from accountancy firm Mazars.
This month almost 135,000 businesses are showing strain, as the impact of a year of Covid-19 restrictions reverberates.
Businesses in the services and retail sectors accounted for almost three-fifths of those showing distress, said Mazars. Sectors allowed to reopen were faring better, with construction and manufacturing businesses making up 7.9 per cent and 6.7 per cent of those in distress respectively.
>See also: UK-EU exports fell by over 40% in January 2021
Paul Rouse, partner at accountancy firm Mazars, said: “During more normal circumstances, we expect between 40,000 and 50,000 companies to trigger one of our negative health markers. Today- even with many Government support measures still in place – we are seeing roughly three times that amount: 135,000.
Rouse said that even these higher figures represented “the calm before the storm” as “significant amounts of business distress” would be felt once the Government withdrew its coronavirus financial support.
London accounts for just over a quarter of businesses in distress (25.58 per cent) followed by businesses more generally in the South East outside the M25 (18.44 per cent).
>See