UK’s sole traders ‘hardest hit by Covid’

UK’s sole traders ‘hardest hit by Covid’
Covid restrictions hit sole traders harder than any other sector of the economy, according to research by small business lender iwoca.
Just over half are trading less than they were before the pandemic, significantly more than limited companies. The research also showed small firms are twice as likely not to be trading at all, with 14% in this position, compared with a 7% figure for limited company.
Almost a third of sole traders – which account for 59% of all UK firms – said they were had lower sales due to workplace safety measures imposed on their customers, compared with only a quarter of limited companies.
And nearly half of business owners with sole trader status were concerned they’d struggle to afford their own wages within the next six months.
On top of that, a quarter of sole traders said they were not planning to take even one day off in the next 12 months.
Seema Desai, iwoca COO, said: “The pandemic has hit sole traders particularly hard. We need them back on their feet – hopefully the lifting of restrictions will help them to recover, which will be great for them and also for the economy more broadly.”