A survey conducted by Dartford-based Blue Rocket Accounting has revealed that despite the continued impact of the pandemic, business confidence is increasing.
Having conducted a similar survey last year, Blue Rocket Accounting wanted to see if things had changed and how business owners were holding up.
The results showed that 80% of businesses surveyed said they are ‘very confident’ that their company can have a positive future, a 9% increase on this time last year. More than half of respondents feel confident that they will continue to do good business, and in fact 40% reported they have seen an increase in turnover during this challenging year.
Although business owners feel confident about the future, there has been significant impact to business owners’ mental health, with 60% of respondents reporting ‘mental strain’ as the biggest impact on their business, higher than numbers recorded against financial losses (35%) or lost customers (32%).
For their Business Security and Confidence Study, Blue Rocket Accounting surveyed 87 of their clients and contacts located in Kent (including Dartford, Sidcup and Bexley), as well as further afield across London and the South East, across a broad range of sectors.
A rise in business confidence
Across the board, business owners who participated in the survey reported that they now have a more positive outlook for the future of their companies.
80% of respondents said that they are ‘very confident’ that their company can have a positive future. This is in comparison to 71% who felt similarly confident this time last year, a 9% increase in confidence over what has been an incredibly challenging period.
52% of respondents said that they are confident they will continue to ‘do good business’ which compares with 41% last year. This represents an encouraging uplift of 11%. In fact, 40% of respondents reported an increase in turnover with 11% of these seeing a significant increase.
Working from home may be here to stay
Most businesses are continuing to adapt to the evolving situation with at least some homeworking on a regular basis. Businesses have had to make some major adjustments to their working practices and infrastructure to ensure that, despite the pandemic, it is ‘business as usual’.
The majority of businesses accept that it is increasingly likely that some degree of remote working will continue for the immediate future, if not permanently. The survey revealed that only 50% of business owners now thought that their business would return to ‘normal’ once lockdowns are lifted. This is a considerable 11% drop compared to the result of 61% in last year’s survey.
Mental strain
What was really concerning was that three in five of respondents (60%) reported the biggest impact to their business has been ‘mental strain’ as a result of the pandemic. This was higher than numbers recorded against financial losses (35%) or lost customers (32%). It is perhaps not surprising, as on top of the financial strain, some people have found themselves balancing work with childcare while schools have been closed.
Some respondents reported experiencing feelings of isolation and loneliness. For many people, going into the office provides a sense of routine, security, and socialisation, which we know is good for our mental health. Exchanging this for the same four walls every day and a stream of video calls and meetings, has taken its toll, and businesses are looking to make changes to their working practices to benefit both owners and employees.
Re-establishing financial stability can be challenging, with a quarter of respondents reporting financial losses as a result of the pandemic. There is no denying the past year has been tough on small companies, but there does seem to be a growing appreciation of local businesses and the need to support them for the good of the local community.
Business owners have shown great resilience and adaptability, despite the bleak economic backdrop, with a few showing true innovation and coming out stronger. In fact, two in five owners reported that turnover had actually increased, with 11% reporting a significant uplift and 29% a slight increase.
Advice for small business owners experiencing challenges
Blue Rocket Accounting has continued to support clients in a number of ways throughout the pandemic, including creating a dedicated COVID-19 news and support area on their website, and manning a closed WhatsApp group where clients can ask questions at pretty much any time, day and night.
Additional support and advice can be found on the Blue Rocket Website in the dedicated COVID-19 news and support area. Alternatively, give the Blue Rocket team a call on 01322 555 442 or email happytohelp@bluerocketaccounting.com.