2021 was a hard year for small business as the pandemic and lockdowns bite for a second time

New research by Findex reveals the effects of the pandemic were felt more keenly by small business owners in 2021 as Covid-19’s second wave reintroduced restrictions and lockdowns upon already struggling operations.

The survey of small businesses across Australia and New Zealand found a third (32 per cent) were “significantly impacted” by the pandemic this year, up from a quarter (25 per cent) in 2020. Constant business disruption has also led to a drop in business confidence.

Only two in five (40 per cent) businesses say they feel confident about the future outlook, dropping from 1 in 2 (52 per cent) in 2020. However, it’s not all gloom and doom, two thirds (64 per cent) of businesses estimate things will be “back to normal” in six months.

Scale back of business support a concern

Many small business owners express concern at the winding back of government support measures such as JobSaver. A large number of businesses surveyed were reliant on government support this year to survive – and fear for their future – as this support scales back:

Seven in ten businesses said Government economic support packages had been important to the survival of their business. While 60 per cent of  businesses predict that winding back government assistance will have an impact on their business

Only a third (30 per cent) of businesses are in the process of developing or implementing business continuity plans (BCPs) to safeguard against future disruption.

Judith Treanor owner of the gift and fashion boutique, Temples and Market, says despite restrictions lifting and stores reopening the effects of the pandemic continue to bite retailers.

“Whilst it was good to have the financial support during the lockdown, the effects of lockdown and Covid are still being felt for retail, and being open incurs costs which unfortunately aren’t being reimbursed through sales this gifting season.

“I wish I could say I was confident for a better 2022 but not at all at this point. I’m deeply concerned,” Treanor said.

“This year I haven’t been able to create any casual employment opportunities, so I’ve been working 6.5 days a week and tapping into pro bono help from friends and family to staff the shop. It’s exhausting and when it’s so quiet, it’s soul-destroying.”

Demand for couriers increases

The story is a little different for  Steve Zammit, managing director of Interparcel Australia.

“We are feeling optimistic, the Courier Pick-up and Delivery report released by IBISWorld in June predicts continued expansion over the next five years with custom transport services cited as the biggest sector for growth,” said Zammit.

With the demand for delivery services increasing, Zammit says retailers need to become more digitally savvy to get their goods in the hands of customers.

“The key is becoming more digital to reach more people highly interested in their products. Consumer buying behaviour has changed and e-commerce is becoming a more significant part of consumer shopping behaviour, although brick-and-mortar stores remain integral for delivering the retail experience,” he concluded.

Want more? Get the latest coronavirus news and updates straight to your inbox! Follow Kochie’s Business Builders on Facebook, Twitter, Instagram, and LinkedIn.