Information from Simply Business, which spoke with 571 small business owners from across the UK, also revealed one fifth aren’t anticipating they will return to the same trade as before the coronavirus pandemic.
According to UK CEO Alan Thomas independent pub and restaurant businesses have been disproportionately affected by Covid-19.
Significantly hit pockets
He added: “[They have lost] a staggering £40,000 each on average due to the pandemic – almost double the amount lost by the average small business.
“What’s more, the changes to VAT and business rates announced in this year’s Spring Statement will have significantly hit the pockets of owners in these industries.
“Alarmingly, one in six (16%) small businesses we spoke to told us they will never financially recover from the pandemic.
“A further one in five (21%) don’t ever expect to return to pre-pandemic trading levels, while one in three (32%) are currently living in fear of running out of money.
“The UK’s 6m SMEs account for a third of all employment and contribute trillions of pounds a year in turnover.”
Pub numbers drop
This followed figures from real estate adviser Altus Group that found the number of pubs in England and Wales has dropped by 7,107 over the past decade.
It showed the number of pubs across the two nations decreased to 39,973 at the end of the first half of the year – a drop of 200 compared to 40,173 at the end of 2021.
The stark statistics came as a survey from a trio of trade bodies revealed only 37% of pubs were currently trading profitably.
Thomas added: “Put simply SMEs will play a crucial role in the recovery of both our economy and communities.
“Set against the backdrop of the cost-of-living crisis, we must do all we can to avoid further hospitality closures and that starts with offering the support these small businesses so desperately need.”