• Local SMEs in Birmingham say Covid has, on average, cost them each £957k in lost revenue
• Despite the hit to their bottom line, local businesses say their confidence is on the up
• SMEs in Birmingham have weathered the storm by looking locally for partners, suppliers and customers

A new survey reveals that Birmingham’s small to medium sized businesses polled believe that increased uncertainty due to Covid has cost them each, on average, £957,499.71 in lost revenue or turnover over the last year.

Despite this toll, there are clear signs that their overall confidence and financial health are rising — with 47% of respondents saying they are more confident about the future of their company compared to this time a year ago. This indicates that the business landscape in Birmingham may have turned a corner after a tough year.

Furthermore, the new survey from CitySprint, the UK’s largest same day distribution company, finds nearly half (29%) of SMEs in Birmingham surveyed say their business is in better financial shape compared to 12 months ago.

As part of their future growth plans, SMEs in Birmingham are looking to expand. 65% of SMEs polled in Birmingham are looking to grow their customer base nationally over the next year — more than the UK average at 54% — while around one in six (or 16%) are looking internationally.

But importantly, they are also supporting each other — over the past twelve months, many have looked closer to home for the support they have needed to survive. 59% of respondents have looked more locally for their business needs compared to the year before, with half of those who did this saying they have sought suppliers from the local area and a fifth (20%) saying local partners. And looking ahead, 73% believe local support will benefit their business over the next 12 months.

Commenting on the findings of the Birmingham’s survey Rosie Bailey, Commercial Director at CitySprint, said:

“It’s great to see signs of recovery on the horizon as well as renewed optimism and business growth for SMEs in Birmingham. It’s clear that businesses have worked together to support each other —helping each other to successfully navigate the challenges and hurdles that have been thrown at them over the past 18 months. Long may this continue!”

Despite the renewed optimism, conditions remain challenging for Birmingham’s smaller enterprises over the coming year — with 40% of respondents saying they fear Covid will continue to be a major obstacle to business success, while 23% worry about how Brexit will affect them.

The combined factors of Brexit and Covid have also thrown a spotlight on supply chains, with 28% of Birmingham’s SMEs polled saying logistics and/or their supply chain have become more important to their business over the last year. This is especially pertinent given more than a third (34%) say their supply chain extends internationally in Europe and other parts of the world.

To help them unlock opportunity over the coming year, a quarter (25%) of SMEs surveyed in Birmingham say more local Government support, in the form of information grants, advice etc, would help their business, while a further quarter are looking to increase partnerships in the UK to help mitigate risks to their supply chains.

To find out how the UK’s SMEs are unlocking opportunity during the post-Covid recovery, visit https://www.citysprint.co.uk/collaborate-uk/collaborate-uk-volume-8]