According to the latest industry research, nearly a third of small businesses have carried on through the Coronavirus pandemic without accessing any financial support from the Government.
The survey from Purbeck Insurance Services involved 200 workers from businesses employing 250 people or less, across the UK. They were asked a series of questions on how their business had coped throughout the pandemic.
When asked about their job prospects, 31 per cent of respondents described themselves as confident about the security of their job, with an additional 17 per cent very confident.
However, one in ten respondents felt very pessimistic about the future.
Communication from employers was considered a key factor in the confidence of employees. Four in five respondents said that their boss had been honest and transparent with employees about how the business is coping financially.
The survey also highlighted the personal financial pressure business owners have faced, with around 20 per cent of small businesses involved in the survey confirming that the director of the company has a personal guarantee for a loan for the business, which puts their home and personal assets at risk if the business fails.
On top of that, 18 per cent said that their boss had taken a pay cut during the pandemic, with an additional 14 per cent saying the business owner was not paying themselves at all.
Todd Davison, Managing Director of Purbeck Insurance Services, said: “Transparency creates trust, making staff feel included and valued but it also helps them understand exactly what’s at stake for the owners of the business.
“If SME owners start to look round for finance independent of any government support they must look at the ways they can mitigate the risk of a personal guarantee backed loan as the options outside of this type of loan could become quite limited.”