SCC Coronavirus Business Recovery Survey
21 May 2020 • Sarah Medcraf
Scottish companies seek guidance as government support schemes take effect
• 87% of firms said lost income is their highest concern if the economy does not begin to open back up over the next two months
• The number of companies fearing imminent collapse has reduced showing signs government support is taking effect
• More than half of businesses (58%) surveyed said they would need a week or less to get back up and running under a partial or complete end of the lockdown.
• 69% of firms say they need clear government guidance & support to help them come out of lockdown: Over half of responses indicated the need for further direct financial support (54%) and half of responses also highlighted a need for contingency plans for potential further lockdown
Scottish businesses hit by the Covid-19 lockdown could be ready to hit the ground running once they are given clear guidance from the Scottish Government on returning to work, according to a new survey by the Scottish Chambers of Commerce.
The poll shows that while the vast majority of businesses in Scotland continue to fear for their survival, there are signs companies are benefitting from access to a range of government support schemes.
More than half of businesses (58%) surveyed said they would need a week or less to get back up and running under a partial or complete end of the lockdown. However, the vast majority (69%) said they would need clear advice and guidance from government to make a recovery. This need outstripped calls for further financial support, which was still deemed necessary by 54% of respondents.
Up to 87% of businesses have said loss of income is their chief risk to survival while a further 63% cite declines in cash flow as their most significant threat.
Over one in five businesses (22%) said they face imminent collapse in the next two months while 43% fear they won’t be able to survive if lock down conditions persist.
These figures represent a small decrease in risk compared to previous survey data which found that catastrophic declines in income and cash caused by lock down conditions meant almost half (48%) of companies faced collapse in the upcoming quarter.
Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:
“Scottish businesses are bruised and it is still the case some are likely to fail. But those that are ready and able to get back to work are showing some signs of confidence they could make it through.
“What is clearly needed now is guidance, specific to sectors, on how to return to work in a way that is safe for employees, customers and the wider population.