A survey of owner-managed businesses has found 15% are still in "survival mode" after the disruption caused by the pandemic.

The findings were revealed in a survey of 431 firms conducted by accountants and business advisors Kreston Reeves - which has offices in Canterbury, Chatham and Sandwich - and the Association of Practising Accountants (APA).

In a set of somewhat gloomy predictions, the survey also revealed if the figures were extrapolated, 1.85million employees remained at risk of redundancy.

The findings revealed 11% of those quizzed reported they expected to make redundancies in the next three to six months, while 53% said uncertain trading conditions was their biggest single challenge.

And the shadow of Brexit was casting a long shadow too with 24% says their business had seen a negative or very negative impact since the UK left the EU while 15% cited Brexit supply chain issues as their single biggest challenge.

However, 84% of respondents reported they were either confident or somewhat confident they would be able to access the finance that they needed over the next six months, with anecdotal evidence suggesting that the major banks were continuing to lend.

Longer term, 54% were more positive about their economic prospects outside the EU while 46% were less positive.

Andrew Tate, partner and head of restructuring at Kreston Reeves, said: “It is clear from our research that a significant minority of owner managed businesses who have managed to pull through the last 12 months are still in survival mode with uncertain trading conditions being the biggest concern to a majority.

“Nonetheless, there is also evidence to suggest that those businesses that have managed to weather the impact of Covid-19 are now more resilient and that existing and proposed government support measures have generally been well received.

“Over the coming months it is vital government maintains a flexible and targeted approach to business support focusing resource on those sectors where there is the greatest need. Owner managed businesses form the backbone of the UK economy and need continued, targeted support as we emerge from this third lockdown.”

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