Small businesses – including car dealerships and garages in the UK – have seen a better-than-expected fall in revenue in Q2 and are more optimistic having traded through the pandemic peak.
New research has shown that firms in this category are ‘outperforming their own revenue expectations’.
It was predicted at the start of April that small businesses, including those in the motor trade, would see a 28 per cent decline in sales for the quarter.
However, the quarterly figures revealed that revenues weren’t as hard hit and declined by only 14 per cent once they had got through the tough Q1 period and UK lockdown.
The latest Barclaycard Payments SME barometer revealed that this resulted in a jump in optimism of 16-points from the start of the second to third quarter.
Its research found that 80 per cent of small businesses plan to invest in the next 12 months, as they have been proactive in their recovery plan.
Rob Cameron, chief executive officer of Barclays Payments, said: ‘SMEs are once again proving their resilience and securing their role at the heart of the UK economy, especially in the face of the challenges posed by coronavirus.
‘Despite uncertainty and business disruption, SMEs are outperforming their own revenue expectations and beginning to look to the future by returning to work and thinking about investment.
‘We welcome these signs of growth and optimism – and hope that SMEs continue to take advantage of the support available, whether from finance partners or the government, in order to continue this recovery.’
Emma Jones, founder of Enterprise Nation, said: ‘We’ve seen SMEs begin to emerge from lockdown in a place of strength – a huge testament to their resilience and their willingness to seek and take advice.
‘It’s heartening to know that the government support measures and resources have helped our nation’s small businesses during the pandemic.’