Small shops are apparently having a harder time with the Corona economic crisis. A study in the UK found that their debts have increased.
The coronavirus pandemic has multiplied the debts of independent British businesses and stores, according to a study. “Most were forced to take on unsustainable debts, and as a result, many are on the brink,” says the widely acclaimed report by former CEO Bill Grimsey.
He warned: “Urgent assistance is needed to prevent a tsunami from closings.” The author emphasizes that the borrowing was enormous. “In the hairdressing and beauty industry alone, we estimate that the debt of around 20,000 independent companies has increased from £ 0.05 billion to £ 0.3 billion.” Overall, the debt of the owner-managed companies would have increased from 500 million to 2.2 billion pounds.
Owner-managed companies were treated unfairly during the pandemic. “While larger companies were able to trade and benefit from generous government support, smaller companies could not trade and felt unsupported and unappreciated.” Many owners have suffered psychologically from the effects and are now at a critical point.
The report criticized British politics for misunderstanding the role of business in strengthening social fabric. France and Germany, which have many more independent companies, are role models here.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
