Patron News
Patron News SMEs showing resilience despite losing 30% of income
Allica: Staff training ‘crucial’ for post-COVID SME recovery
New research from Aldermore revealed that the pandemic has caused a 30% loss in monthly business income, a small improvement from 34% in April for the average SME.
A study commissioned by Allica Bank has revealed that the practice of regular training correlates strongly with high performance in SMEs and will be vital to businesses’ prospects of a swift recovery post-COVID.
Nearly one in five (18%) small businesses have seen a decrease of more than 70% of their business income. To ensure their survival, many businesses are proactively taking steps to protect their business. Two in five (38%) SMEs have adjusted their business plans due to the pandemic as they anticipate future issues such as a fall in revenue (38%), another period of lockdown (32%) and an ongoing period of economic downturn (30%).
The study analysed data from over 1,000 companies and ranked their success on a scale that evaluated factors including productivity, growth, consistency, and outlook. The NACFB Patron’s study showed that routine staff training is a common characteristic among the most successful SMEs.
The NACFB Patron has created a dedicated campaign hub on its website which features inspiring case studies of small businesses and brokers from across the UK. Tim Boag, group managing director, business finance at the NACFB Patron, said: “We’ve launched our ‘Small But Mighty’ business campaign to share real stories and experiences of SMEs who are tackling the challenges of COVID-19, as well as providing businesses with special guides that offer tips on a range of measures such as how to reduce costs, ways to adapt their business, or find suitable funding opportunities in these uncertain times.” 12 | NACFB
47% of the 100 highest scorers on the SME Performance Index provided training for employees at least on a quarterly basis. However, nearly half of all small businesses (46%) only provide training once a year or less, inadvertently hindering their growth and success prospects. Frequency of training also differed across sectors. 34% of legal businesses provide training for staff once a month compared to just 6% in the hospitality and leisure sector. Chris Weller, chief commercial officer, Allica Bank, said: “The provision of regular training not only builds these characteristics into teams but serves to maintain a sense of value and togetherness that will boost morale, aide retention and improve performance – all of which contribute to the ongoing success of a business.”
