Business development ยท 27 April 2020

NEWS:1m microbusinesses move online to survive COVID-19

A new study has revealed that one-fifthof microbusinesses (those with under 9 employees) have set up an online presence for the first time inorder to survive the COVID-19 outbreak.

The research conducted by GoDaddy (a website building platform for SMEs), has shown that as many as 1m microbusinesses have tried to build a digital brand as they innovate to survive the lockdown.

As Britain enters its fifth week of lockdown, many industries are finding it increasingly difficult to stay afloat. Government-backed CBILS loans are still struggling to approve the majority of business owners who applied for the scheme despite its opening over a month ago.

33% of business owners’suggested that if there were to be another two months of lockdown, they would expect a 50% drop in sales, where 38% of them would be pushed into greater debt.

?The pandemic has put extraordinary demands on the 5.6 million micro-businesses in the UK. They are vital to our economy and we have seen how resilient and determined entrepreneurs are to get through this and for micro-businesses, it has meant nothing short of the second digital revolution, “?states GoDaddy Regional President, Irana Wasti.

Coronavirus has altered consumer attitudes towards micobusiness. In fact, 63% of consumers say they are more likely to shop at small businesses to help them financially during the pandemic, while 67% add they hope to continue doing so after restriction laws have been lifted.

The news is welcomed by small business owners such as Anna Chapman, co-owner of luxury hot chocolate store, Knoops. Before the Coronavirus outbreak, she had just opened her first London store in Clapham Junction, with plans for a second London site opening in the summer.

Until further notice: Chapman’s newest cafe was forced to shut due to Coronavirus.
times are tough for everyone, including for microbusinesses such as ourselves. Like many others, weve had to innovate practically overnight to stay relevant in this new world, launching new products and services online so that people can enjoy Knoops in the comfort of their own home.Obviously were concerned about the impact a longer lockdown will have on the economy and our business in the medium term, but right now were all having to get used to working from home and not being together in-store, ” she says.

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Laura is the Junior Reporter at Real Business and Business Advice. She's the first point of call for any PR, business owner or industry insider looking to tell a story of entrepreneurial inspiration, retell some key advice, or a ground-breaking news story. She is the core ambassador for the brand(s) and can be found attending high profile events and meeting disruptive business owners across London and beyond.