London, Scotland and north east England SMEs worst hit by coronavirus
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According to new research, small and medium-sized enterprises (SMEs) in London, Scotland and the north east of England will be most affected by the corona virus.
This emerges from the SME confidence report, which interviewed 3,700 SME owners across the UK to measure the impact of the pandemic.
The Small Business insurer's report, Simply Business, found that the COVID-19 outbreak in London will cost SMEs an average of £ 17,074 ($ 21,084) in lost time, income and loan repayments each.
This is £ 6,000 more than southwest SMEs and £ 5,000 more than the national average of £ 11,779.
In Scotland SMEs will face an average cost of £ 15,484 each, while the third highest average costs will be £ 15,040 each in the North East.
Across the UK, total corona virus costs for SMEs will exceed £ 69 billion.
Average cost of corona virus per small business, including lost work, income, and loan repayment:
London - £ 17,074.36
Scotland - £ 15,483.65
North East England - £ 15,039.52
South East England - £ 12,753.44
Wales - £ 11,804.82
North West England - £ 11,494.86
The Midlands - £ 11,079.12
South West England - £ 10,989.60
Business confidence is most affected in Scotland and the North West, where, according to the report, nearly half of respondents say their business is threatened with closure.
Across the UK, an estimated 234,000 SMEs have closed, while two-thirds have temporarily stopped trading.
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The numbers come from the Organization for Economic Cooperation and Development (OECD) warning that Britain is likely to be the most affected by COVID-19 among the major world economies. The UK economy is expected to fall 11.5% in 2020.
The ONS figures released on June 12 also showed that the UK economy hit a record 20.4% in April, far exceeding the downturn during the 2008/09 financial crisis.
Alan Thomas, CEO of Simply Business in the UK, said: "The importance of SMEs for the UK cannot be overstated. It accounts for 99% of all UK companies and contributes over £ 2 billion to combined sales. Simply put, it is for our economy is essential that small businesses recover. "
However, he said there are encouraging signs of a recovery as companies remain robust.
The report found that most start-ups were in London. 15% of SME owners plan to start a new company after the ban, compared to the national average of 9%.
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