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Over half of businesses in Aylesbury Vale could fail because of coronavirus

Figures show the financial difficulties startups are facing.

Published by Scarlett Bawden-Gaul at 5:56am 13th July 2020. (Updated at 10:56am 13th July 2020) 3-minute read.

Over half of businesses in Aylesbury Vale could fail because of coronavirus

Businesses in Aylesbury Vale are facing failure due to coronavirus. 

More than half of startups and growing businesses in Aylesbury Vale are at risk of failing becaose the pandemic. 

A study from analyst Beauhurst of almost 30,000 new and growing businesses has warned of the financial impact they're facing. 

Beauhurst analysed various factors to determine the risk facing each business, such as whether their premises had been closed, social distancing had prevented them providing a product or service, or they were having to offer their products at a reduced cost.

56% of Aylesbury firms included in the study said they were 'at risk'.

Of those 7% were at severe risk, so had suffered serious disruption to their operations and 4% were critical and facing an "existential threat" to their ability to continue trading.

Phillipa from bucks Business first says the worries are changing:

"Our latest figures show that that 11% has now reduced down to 9% at the end of June.

"But, what we are seeing now is as things start to reopen there are concerns around the additional costs of doing business. In terms of how the work place is laid out, how you provide sanitiser, screens and everything else."

"The number of calls that are coming through to us and the number of businesses that are requiring support has increased maybe fivefold though."

Some businesses could see a positive impact from the pandemic, if they are able to grow their operations or have otherwise seen a surge in demand, with tech companies faring particularly well.

In Aylesbury Vale, 11% of businesses fell into this category, compared to 15% across the UK.

Henry Whorwood, head of research and consultancy at Beauhurst, said start-up and scale-up companies will be integral to the UK’s productivity as it moves towards an economic recovery.

He said:

"The companies we track are the UK’s economic powerhouse. They employ millions of people, have received billions in investment and grants, and operate in sectors as diverse as AI and catering.

"It’s therefore crucial to understand how the Covid-19 epidemic is impacting these businesses. Our data shows just how much is at stake.

"It’s crucial to make sure the interventions proposed by the Government reach these companies."

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