Covid business support

OECD warns governments not to unwind SME support too rapidlyA new OECD report reveals how government rescue packages have played a crucial role in not only helping SMEs survive but in many cases thrive during the pandemic. According to OECD analysis, 55% of SMEs in the UK have been able to access and combine government support, compared to 33.6% in the OECD, with non-repayable forms of support the most popular. However, the report warns that many support mechanisms for SMEs and entrepreneurs have come in the form of debt which, if unwound too rapidly, could precipitate a wave of bankruptcies that jeopardises the recovery. The report also says, however, that the crisis has strengthened SME resilience; more than half of SMEs in OECD countries have increased their use of digital tools, which has helped to narrow digital divides with their larger counterparts. The pandemic has also created new opportunities for SMEs and entrepreneurs, through shifting global value chains, stronger local business ecosystems and the green transition, it says.