We’re more than halfway through 2022, and the pandemic appears to be behind us. Restrictions have been lifted, and many industries are now getting back on their feet. However, it is clear that there are lingering effects of the pandemic in some sectors, so the training hub School of Marketing set out to find which industries are still struggling.
By analysing ONS data regarding the number of new businesses created and the number of businesses which closed in each sector, both pre and post-pandemic, it is clear that the information and communication industry has taken the biggest hit. Before the pandemic, 92 IT businesses closed for every 100 created. Post-pandemic, 173 IT businesses close for every 100 which open.
This is most likely due to a combination of factors, including the industry’s reliance on overseas consumption, global supply chain disruption, and shipping and delivery bottlenecks.
The second most affected industry is finance and insurance, which saw a 50% increase in the number of businesses closing post-pandemic. Pre-pandemic, about 40 businesses closed for every 100 created. Post-pandemic, that number is up to 72.
CEO of School of Marketing Ritchie Mehta points out that the stagnating number of new businesses makes skilled employees extremely valuable in the post-pandemic market.
“As entrepreneurs look to protect themselves against a harsher business environment, the value of skilled employees has never been higher,” Mehta says, “This data shows how much more difficult it has become to survive as a business since the pandemic. In the two years before the impact of Covid-19 on average more businesses were created than closed each quarter, but now the numbers of company births and deaths are basically equal.”
Across the board, businesses are now closing at a slightly higher rate than they are being created – 101.5 for every 100. Before the pandemic, about 87 businesses closed for every 100 created. It is unknown how long these effects will last, but it is clear that it will take time to reach those much sought after ‘normal’ levels once again.