The last few months have established a rather unique operating environment, with the current crisis pushing the acceleration of digital adoption. Businesses have been forced to embrace digital transformation to stay relevant, at least in the short term. Will this trend continue into 2021 and beyond or will the expected economic impact of the pandemic slow the pace of innovation?
Our own research shows that the number of companies incorporated, one of the key metrics of health of the economy, had the biggest hit during April with a 30% drop in comparison with same time last year.
On the other side of the coin, the number of companies going into liquidation and administrations has increased by 89% in April and 146% in May when compared with last year’s figures. These numbers may improve as things begin to recover, but one aspect is clear - the need to support SMEs during these difficult times is as evident and important as ever.
What could be done to support SMEs?
It is crucial to deliver timely support to SMEs now more than ever before if we are to see the UK SME sector thriving in the years to come. Both the government and lenders need to continue their efforts in sustaining SME business continuity. Innovate UK is one of the government backed organisations that’s set out to support research and development focused UK SMEs with the aim of sustaining the level of existing and continuing innovation.
The future of the life blood of the UK economy greatly depends on how agile the businesses are as well as how quickly they can get access to much needed finance. Innovate UK is delivering loans to businesses in need in record time. Technology plays an important role in enabling fast access to funds. DueDil is proud to be one of Innovate UK’s partners, helping them to facilitate the support package for innovative SMEs. DueDil allowed Innovate UK to speed up the evaluation process and reduce the time to fund.
How to find out more?
We’ve sat down with Emily Hogg, Head of Lending & Investment Operations and Nigel Walker, Head of Innovation Lending from Innovate UK, as well as John Davies, Chairman at the Association of Alternative Business Finance and discussed the developments around the efforts being made by the lenders and the government to support SMEs in need.
To hear from this highly esteemed panel led by our COO, Denis Dorval watch our on demand webinar now - “The Future of Transformation and Innovation in the SME Landscape”.