Identifying Sources for Greater Profitability in 2021
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2020 was a Tough Year for the Vast Majority of SMEs
2020 was a rough year for businesses of all sizes and was in particularly tough on industries that are built around social contact; Hospitality, Performing Arts, Air Travel & Night Clubs to name a few. In November 2020 HM Treasury forecasts that the UK economy (GDP) will contract by 11%, the steepest decline in over 300 years since the Great Frost of 1709.
The chart below is taken from Google COVID 19 mobility trends and shows community movements in specific periods within the UK from February 2020 (Pre UK Lockdown) to 1st January 2021. It clearly depicts steep declines in movement in areas of Retail & Recreation, Workplaces & Transit Stations. These sharp falls in activity in those locations have a relationship with economic activity.
Research conducted by CIMA on 500 SME decision makers state that in the trailing 6 months to October 2020 revenues were on average 6.5% down on the prior year. With companies who have 10 to 19 employees fairing worse with average turnover down 13.1% in the same 6 months. Within the same research 70% of the…
