Almost one in five small businesses won’t survive 2022 without a bumper Christmas

A study by insurance provider Simply Business has predicted that one in five small businesses will not survive 2022 unless their Christmas sales are strong.

It was also found that 27% of SME staff are “not confident” about their trading fortunes, while one in ten expects to fare worse this month than they did last December. Two-thirds of SME owners believe a strong performance over the festive season would keep their business afloat.

Owners said their biggest challenges will be attracting enough customers (21%) and earning enough to keep their operation going into 2022 (17%). Analysis shows that the pandemic has already cost Britain’s SMEs a combined £126.6bn.

The survey of almost 600 small business owners, found out how reliant they are on Christmas trading, and the consequences if they struggle with sales this December.

More than one third of business owners told us they make more than 20 per cent of their annual revenue over the festive season. Whilsy 60 per cent say a good festive season would be a lifeline for their business as they continue to recover from the impacts of the pandemic.

On top of a difficult 18 months and the continuing impact of the pandemic, the research highlights some of the biggest challenges for small businesses over Christmas:

• 21 per cent say attracting customers
• 17 per cent say earning enough to stay in business
• 20 per cent say the impact of continuing supply chain issues
• 52 per cent say they fear future lockdowns and tighter restrictions (and their impact)

Alan Thomas, CEO of Simply Business, said “For a third of small businesses, Christmas accounts for over 20% of their annual revenue. Many SME owners quite simply need it to be Christmas every day if they’re to recover properly from a devastating two years. While much of the UK prepares for a period of well-earned festive cheer, the feeling among small business owners is likely to be rather more sombre this Christmas.”

“Few have been harder hit in the last two years. They’ve faced the pandemic head-on, navigated supply shortages, and adapted to a new normal. They’ve shown resilience in abundance and done all they can to stay afloat. But without a bumper Christmas trading period, one in five small businesses will permanently close in 2022.”