The impact of coronavirus to small businesses operating in the hair and beauty indsutry will exceed £9,282 each in lost work, earnings and loan repayments, with one in three (33%) at risk of permanently closing, according to a new report.
Analysis of 411 hair and beauty business owners, released by small business insurer Simply Business, reveals that more than two out of five (43%) are also concerned about the future of their business. The figures come as many barbers and hairdressers were recently able to reopen their doors on Saturday (4th July), although beauticians and nail bars need to remain closed.
Worryingly, well over a third (37%) of small businesses in the hair and beauty industry are also concerned about running out of money – with half (50%) of the participants admitting they have had to borrow money from friends and family to stay afloat. A quarter (26%) are also concerned about being able to pay back money borrowed.
When it comes to financial support from the government, which has proven a lifeline for many, seven out of 10 (72%) have been able to apply for a government grant or loan, helping to relieve some of the financial pressure that SMEs are facing.
Looking ahead, the study also revealed how hair and beauty firms feel about life after coronavirus, with three fifths (59%) worried about losing customers or their jobs from the pandemic.
But despite these challenges, one in five (22%), said they still felt optimistic about their business’s chances after coronavirus. One in 20 (6%) even feel confident enough to start a new business.
Alan Thomas, UK CEO at Simply Business, commented: “No business has been able to escape the impact of the pandemic – and that’s no different for small businesses and the self-employed. They’re the lifeblood of the economy, and with many of these at risk of permanent closure, so much is at stake for our local communities and wider economy.
“Few small businesses have been hit as hard as those in the hair and beauty industry, and it's clear that many will take time to recover. Small business owners and the self-employed have shown how creative, determined and resilient they are throughout the pandemic, and we know they’re going to be crucial as the UK economy looks to bounce back.
“Although the likes of beauticians and nail bars are still unable to open their doors to customers, it’s promising to see many barbers and hairdressers safely welcoming in customers while getting their livelihoods back on track.”
Simply Business has launched a free Financial Support Checker to help small businesses, landlords and the self-employed to quickly determine what financial support and schemes are available to them during the coronavirus pandemic.
A simple questionnaire takes business owners just a few minutes to complete and will point them towards relevant government financial support.
Methodology: Data: Survey of 411 hair and beauty small business owners from across the UK, conducted May 2020
How did we calculate the £9,282 figure?
100% of small business owners surveyed reported being affected financially by the coronavirus pandemic.
We asked small businesses how much they estimate the coronavirus pandemic will cost them in total, including lost earnings, jobs and revenue. The weighted average of this cost is £9,282
Launched in 2005, Simply Business provides an online brokerage service, delivering policies tailored to individual business requirements. Using the power of tech and data to create the best possible customer experiences, Simply Business employs over 600 people across offices in London, Northampton, and Boston in the US.
Owing to its internal underwriting capability, Simply Business can cover over 1,000 trade types – ranging from plumbers to accountants to dog walkers. An accredited B Corp for their positive social impact, Simply Business has also been voted the Sunday Times Best Company To Work For twice in a row.
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