Nearly 6 in 10 sole traders trading less – or not at all – as restrictions ease

5

min read

Nearly 6 in 10 sole traders trading less – or not at all – as restrictions ease

red wedge
grey wedge
yellow dot
grey line with green square
blue square
  • Sole traders may have been disproportionately impacted by COVID restrictions: 58% are either not trading or trading less than pre-COVID.
  • Almost half of sole traders worry they won’t be able to afford paying themselves a salary in the next 6 months.
  • Nearly 1 in 4 sole traders will take zero days off in the next year.

Sole traders – who account for 59% of the UK business population – may have been worst affected out of all businesses by COVID restrictions. Our survey findings* reveal that the majority (58%) of sole traders (defined as those who are the exclusive owners of their businesses) are trading less than pre-COVID, compared to 43% of (limited) companies. What’s more, sole traders are twice as likely not to be trading at all, with 14% in this position compared to 7% of limited companies.

COVID- secure workplace measures disproportionately impacted sole traders

Small businesses report that having to be ‘COVID-secure’ took its toll; but it seems sole traders suffered the biggest hit. Almost a third (32%) said they were making fewer sales due to COVID-secure workplace measures (compared to 24% of limited companies), and – where 29% of limited companies had fewer customers – nearly 4 in 10 sole traders suffered the same (39%).

Our research also revealed that nearly half of business owners with sole trader status (46%) were concerned they’d struggle to afford their own wages in the next 6 months (compared to 37% of those without).

Nearly 1 in 4 sole traders will take zero days off in the next year

As SMEs continue to wrestle against the pandemic, time off seems to have become a luxury they can’t afford. And again: it’s sole traders who’re worst affected, with 24% not even planning to take one day off in the next 12 months (compared to 13% of limited companies). The majority – 59% – plan to take less than ten days off in the next year (compared to 50% of limited companies).

Seema Desai, our Chief Operating Officer, added: “The pandemic has hit sole traders particularly hard. We need our sole traders 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.”

*469 small business owners were surveyed between 10/05/21 - 24/05/21: data available on request

{{finance-explained-cta="/components"}}

Charlotte was a UK PR Manager at iwoca. She's been sharing news and insights about the finance industry for over four years.

Article updated on:
October 4, 2022

Get started

  • Borrow up to £500,000
  • Repay early with no fees
  • From 1 day to 24 months
  • Applying won't affect your credit score
Apply now
red line and yellow circle

Other finance related topics

Lorem ipsum dolor sit amet, consectetur adipiscing elit.

View all
Alternative business funding

Supply chain finance

Supply chain finance plays a crucial role in the success of businesses in the UK. It involves various financial techniques and solutions that help optimise the movement of goods and funds along the supply chain. By understanding the basics of supply chain finance, businesses can unlock potential opportunities and drive growth in the competitive market.

Accountants

Management buyout

A management buyout (MBO) is a well-known strategy in the business world that allows the existing management team to take control of a company by purchasing either all or a majority of the company's shares from its current owners. In the UK, management buyouts have gained significant popularity as a means of acquiring and managing businesses.

Alternative business funding

Property refurbishment loans

In today’s competitive real estate market, property refurbishment has become an increasingly popular strategy for investors looking to maximise their returns. However, undertaking a renovation project can often require a significant amount of capital upfront. This is where property refurbishment loans come in to provide the necessary funding. In this article, we will explore everything you need to know about these loans and how they can help turn your property investment dreams into a reality.

light blue wedge

Let’s get started

Applying won’t affect your credit score

Need help? Call us:

Get approved in 24 hours

Applying won’t affect your credit score

What's next?

  • Apply in 5 minutes
  • Meet your account manager
  • Get money in the bank in hours

Need help? Call us:

No items found.