In its SME Finance Monitor report, BVA BDRC found that three-quarters of small and medium-sized enterprises (SMEs) have been negatively affected by COVID-19, with 35 percent saying things have been really tough.
When asked, 40 percent of SMEs felt the worst was still to come, although the number of those that expected income to drop by half or more had reduced from 60 percent in the second quarter to 30 per cent in the three months from July to September.
SME Finance Monitor editor Shiona Davies said that the third-quarter results reflect both the stresses SMEs have faced, especially those in the hospitality sector, and the improved mood during the summer months before the second Covid-19 wave developed – also reflected in the GDP figures.
She said that while there had been improvements since the second quarter, many SMEs remain cautious about their future. This is also reflected in the interim data for October and November, which will be published soon.