Growth Platform survey reveals 70% of businesses had reported a decrease in sales and bookings and the 58% were experiencing cashflow problems. Tony McDonough reports

 

Coronavirus has impacted on 95% of businesses in the Liverpool city region, a new study shows.

Collected in the days before Prime Minister Boris Johnson announced tougher restrictions on people and businesses in order to slow the spread of COVID-19, the survey was sent to more than 12,000 businesses.

The study also revealed more than 70% of businesses had reported a decrease in sales and bookings and the 58% were experiencing cashflow problems.

It was compiled by Growth Platform, set up in 2019 by the Liverpool City Region Local Enterprise Partnership (LEP) and Metro Mayor, Steve Rotheram, on behalf of the Combined Authority, with the aim of delivering “sustainable economic growth”.

In response to the coronavirus outbreak, the Mr Rotheram is leading an economic resilience plan, one focus of which is tactical business support which will be delivered by Growth Platform.

As part of this approach, he is leading a weekly call bringing together the city region’s business leaders. A key part of the plan is understanding and supporting the 50,000 city region businesses, of which 99% are SMEs and 80% have less than 10 employees.

Mr Rotheram said: “The spread of the Coronavirus is having a massive impact on every aspect of our daily lives. Our survey lays bare its adverse impact on local businesses. While our primary responsibilities are to ensure we stop the spread of Covid19, I want to do all I can to help safeguard people’s jobs and livelihoods.

“This feedback is so useful in the conversations I am having with government about the support that businesses in our region need and to help us as we develop a devolved support package. The measures announced by the Chancellor are mostly welcome, but lots of organisations have already been in contact about the need for the pace of action to be speeded up.”

The survey data collected to date indicates that:

• 72% of business have had a decrease in sales & bookings.
• 58% of business are facing cashflow issues.
• 42% of business currently have staff in isolation, with 90% of these citing it as a major hinderance to operations.
• 26% are experiencing supply chain issues.
• 65% of local businesses are struggling with sick pay.

The survey also revealed the key areas of support needed by business, with city region business owners citing the following areas as necessary for helping them navigate these challenges:

• 60% need short term working capital.
• 52% need longer term finance.
• 51% need more information.
• 30% need financial advice.
• 10-20% need HR, Insurance and legal advice.

Mark Basnett, managing director at Growth Platform, added: “We are working closely with the network of business support organisations and local authority teams across the city region who are doing a brilliant job providing support to local businesses.

“We are all sharing intelligence and collaborating on the priority needs of business at this challenging time. To support them and help businesses further, Growth Platform has refocused its team to provide additional frontline response for businesses and partners.

“This is a brokerage service into the range of Government schemes and access to further specialist support from local professional services firms offering their services on a pro bono basis.”

The Metro Mayor has also launched an additional survey aimed at the self-employed, freelancers and sole traders, in order to understand how COVID 19 is affecting these groups.

Growth Platform has also created an online COVID-19 hub for businesses looking for advice and will be issuing regular bulletins to keep businesses up to date with the latest support and guidance – click here

These provisions follow the Metro Mayor’s announcement last Friday, where he announced an initial raft of measures in response to Coronavirus, including ‘LCR Cares COVID-19 Community Support Fund’, a crowdfunded campaign to support community and voluntary groups, as well as initiatives  to relieve employers and employees affected by the outbreak. These measures include:

• Free bus travel on our supported services for children of keyworkers.
• Lifting of restrictions on concessionary travel.
• £65,000 community business support fund.

How can businesses get support?

Check the Growth Platform website for updates as information is shared both by central government and locally by clicking here

Register for the Growth Platform bulletin for regular updates by clicking here

Email the team to request support localgrowthhub@growthplatform.org

Follow the Growth Platform on Twitter and LinkedIn for updates and guidance.