I have been running a small recruitment agency for 15 years which employs 8 staff. Since the lockdown 90% of our revenue has gone. We are down to a skeleton team servicing Key Worker accounts with debtor payments slowing up and cash reserves depleting.
The recent government help offered to the self-employed didn’t include directors of limited companies receiving income by dividend. Unlike the returns enjoyed by investor dividends of FTSE and AIM markets most small business owners dividends form the majority of their income, which for a large proportion of them has now gone.
My bank tells me the government backed loans are a last resort offering, after all other business and personal assets have been exhausted. Also required is a personal guarantee to back it up. What struggling business owner would feel comfortable about risking their home for an uncertain future? I know I wouldn’t.
Small businesses will fold, leaving loyal staff without jobs and debts to be picked apart by administrators. A lose lose situation for all, especially for the state.
In fact, the state stands to lose more than anyone. If our businesses go belly up, tax bills don’t get paid, redundancy is picked up by statutory payment, the unemployed claim state benefits, Job Seekers allowance and Universal Credit etc.
Surely government should be supporting the small businesses in the same way as the PAYE and Self Employed? It doesn’t take a rocket scientist to work out that we won’t be able to survive for long without getting into lots of debt.
With small businesses in Essex alone making 93% surely there must be some common sense out there somewhere.
Perhaps this story might resonate with someone and might help to make a change. I urge you to like/comment/share it in the hope that it might fall into the hands of someone with the influence to see sense and make that change so the small employers get the proper help they so desperately need.
Stay safe and well people!!
