74% of self-employed say ‘pingdemic’ having negative impact on small business recovery, with one in 10 losing out on £10k due to staff shortages

The ‘pingdemic’ is having a negative impact on small businesses according to three in four (74%) owners – as one in 10 (12%) report additional losses of over £10,000, on top of the £22,461 they already expected to lose due to Covid-19.

The survey of over 500 small business owners by Simply Business – one of the UK’s largest providers of small business insurance – revealed that three quarters (74%) of owners feel the NHS Test and Trace app is having a negative impact on small business recovery.

With many small businesses still operating below pre-pandemic trading levels, the ‘pingdemic’ is another blow to the UK’s SME community.

A Simply Business study from earlier this year found that SMEs expected to lose an average of £22,461 each as a result of Covid-19, and one in ten (12%) owners believe that the impact of the ‘pingdemic’ will cost them a further £10,000. It’s therefore no surprise that 12% are concerned about the future of their business.

The survey found that one in three (32%) small business owners have been directly impacted by the ‘pingdemic’ – having either been pinged themselves, or had reduced staff numbers due to self-isolation. This has resulted in 16% of small businesses having been forced to stop trading at some point. And the impact doesn’t end with staff shortages, with one in five (16%) owners believing the number of people willing or able to interact with their business has been reduced out of fear of being instructed to self-isolate.

While many expect app updates and changes to isolation rules to have a positive effect, small business owners are less optimistic – one in three (31%) say the updates may reduce alerts but will make little difference and are likely to be temporary. Over half (52%) also said the ‘pingdemic’ has heightened concerns about the likelihood of future lockdowns.

Alan Thomas, UK CEO at Simply Business, comments: “The ‘pingdemic’ is proving another obstacle for small businesses in their recovery from the impact of Covid-19 – with a third of owners directly impacted by ‘pings’ to either themselves or staff, and many taking a hit financially.

“Our research shows SMEs expect the pandemic to cost them £22,461 each on average, and the news that more than one in 10 expect to lose at least £10,000 more on top of this is a bitter blow – both for the individuals affected and the wider economy.

“Making up 99% of all UK businesses and contributing trillions of pounds to the UK economy, small businesses are central to our collective recovery. Put simply, we need them to bounce back. It’s important to remember that behind every small business is a small business owner – many of whom have suffered both financially and mentally over the last 18 months.

“As the number of NHS app pings fall, and isolation rules change, it’s vital that we all do our bit to support small and local businesses. At Simply Business, we want to help one small business owner get back on track with a cash grant – that’s why we’re giving away £25,000 as part of our Business Boost campaign.”

Small business owners can enter for a chance to win a £25,000 Business Boost at simplybusiness.co.uk/business-boost/